livelihoods

Climate Change and Microfinance: It's Not Easy Being Green?

November 17, 2008 - 10:02am

The unofficial color of the new millenium is beginning to evoke less images of Kermit the Frog, and more impressions of the lively discourse on environmental sustainability.

What with "green" on everyone's tongues, it was only a matter of time before the question of environmentally-friendly practices arose in the microfinance realm.  Green Microfinance, an organization devoted to harnessing the power of renewable energy to microfinance, is facilitating this week's microLINKS Speaker's Corner on Microfinance and Climate Change, which poses three questions to its participants:

  • What is the impact of microenterprise and microfinance clients on the natural environment?  
  • How can MFIs promote environmental sustainability while still meeting their "core mission" of reducing poverty?
  • What is the role of donors and investors in ensuring environmental sustainability of an MFI and their clients?

These issues are important, but one can't help but wonder if there's a fourth question that also needs to be asked: What can microfinance do to help protect livelihoods threatened by climate change?

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