Paper

European Green Microfinance: A First Look

Analyzing the development and trends of green microfinance in Europe
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This study explores the status of green microfinance in Europe. The environmental engagement of European microfinance initiatives is analyzed along five main dimensions: environmental policy, ecological footprint reduction, environmental risk assessment, green microcredit provision, and environmental non-financial services. The study is based on extensive literature review, web-research, an online survey submitted to European institutions and one-to-one interviews. Findings include:

  • Level of environmental engagement depends on institutional characteristics. Institutions registered as banks and NBFIs seem to have a better environmental performance than other legal statuses;
  • Institutions from Eastern Europe have, on average, a better environmental performance than institutions from Western Europe;
  • Older institutions seem to perform better than younger institutions;
  • Larger institutions, in terms of number of clients and institutions with a smaller average credit size seem to have better environmental performance;
  • Interest of stakeholders (donors or investors) appears to have a positive influence on the environmental performance of the institution.

About this Publication

By Forcella, D.
Published