MIF (Multilateral Investment Fund)
EcoMicro is a technical cooperation program co-financed by the Multilateral Investment Fund (MIF) and the Nordic Development Fund (NDF), with a budget of USD 7 million. The program’s objective is to implement green finance projects through microfinance institutions (MFIs) in Latin America and the Caribbean. The program has been running for three years. Econoler was chosen to assist a microfinance institution in implementing green finance projects.
In consortium with Développement international Desjardins (DID), Econoler was selected by the Fundación Paraguaya, one of the MFIs admitted into the program by the MIF, to perform the following three task components: (1) providing assistance in the development and introduction of a credit product to finance the purchase of efficient cooking stoves and possibly other energy-efficient equipment; (2) providing a diagnosis for FP’s lack of energy efficiency and assisting with the development of internal policies to ensure environmental sustainability through the implementation of energy efficiency measures in FP’s daily operations; and (3) assessing the vulnerability of FP’s portfolio to climate change and assisting with the development of a tool to manage potential risks.
To carry out the first task component, Econoler and DID provided FP with assistance in (1) developing and implementing an internal environmental and energy policy; (2) implementing an awareness-raising campaign about the new policy among FP staff; and (3) establishing a baseline to determine FP’s energy consumption and carbon footprint.
To carry out the second task component, the consortium collaborated with FP in (1) assessing the vulnerability of FP’s portfolio to climate change; and (2) developing a methodology to manage any potential vulnerability-related risks.
To carry out the third task component, Econoler and DID assisted FP in (1) conducting a market research study (outsourced to a local market research firm) to identify the most appropriate EE technologies to be financed; (2) designing an EE finance product; and (3) providing training to FP staff and its clients on EE and the new EE finance product. The component also included the launching of a pilot project for the new EE finance product as well as the design of a rollout strategy (including adjustments to the product if necessary).
Econoler finally prepared a case study of the project and presented it to various stakeholders.