
I was surprised and maybe even a little disappointed to see that most of the article by CGAP's Katharine McKee focused more on the possibilities of using microfinance to provide renewable energy to BoP households and businesses rather than financing microenterprises working in environmental sectors.
Still, Katharine does a good job of summarizing current challenges and opportunities for creative partnerships that utilize microfinance to expand the consumer base for renewable energy. These include:
- Generating BoP demand for low cost, renewable energy sources and
- The conflict between the large-scale, long-term investment needed for these projects vs. the short-term, small-scale nature of microfinance.
The article is certainly worth a read and importantly pushes forward dialogue between the microfinance community and sustainable development practitioners.