DURBAN, SOUTH AFRICA – The Overseas Private Investment Corporation (OPIC) has approved $10 million to enable MicroEnergy Credits (MEC) bring clean energy microloans to millions of households around the world.
MicroEnergy Credits will use the proceeds of the OPIC loan to assist qualified microfinance institutions launch and scale clean energy lending programs. The program aims to significantly increase the availability of microfinance capital for low-income populations to afford quality clean energy products in categories which include high-efficiency stoves, water purification, and solar lighting.
Microfinance institutions that partner with MEC use carbon finance to cover the upfront costs of offering microloans for clean energy products and reduce the effective cost to the households of accessing efficient and renewable energy. Individuals who receive microloans to purchase clean energy not only benefit the planet; they benefit from improved health due to reduced indoor air pollution and increased savings from reduced expenditure on traditional fuels.
“Making clean energy technology available to individual micro borrowers and micro entrepreneurs on a widespread basis is an important – and often overlooked – part of the international effort to reverse climate change,” said OPIC President and CEO Elizabeth Littlefield. “This landmark project has the potential to transform low-income populations’ access to affordable clean energy products, and in the process improve both their health and prospects for economic growth. Partnering with MicroEnergy Credits to deliver innovative financing through the use of carbon credits only makes the project more remarkable.”
“We believe microfinance institutions, with their enormous market reach, have an important role to play in providing access to clean energy products and services to people at the bottom of the economic pyramid,” said April Allderdice, CEO, MicroEnergy Credits. “OPIC’s investment will help MicroEnergy Credits accelerate our growth in high potential markets with significant unmet demand for affordable clean energy products.”
For more information, please contact:
Timothy Harwood
OPIC 202-336-8744
Josie Noah
MicroEnergy Credits
josie.noah@microenergycredits.com
About OPIC
OPIC is the U.S. Government’s development finance institution. It mobilizes private capital to help solve critical development challenges and in doing so, advances U.S. foreign policy. Because OPIC works with the U.S. private sector, it helps U.S. businesses gain footholds in emerging markets catalyzing revenues, jobs and growth opportunities both at home and abroad. OPIC achieves its mission by providing investors with financing, guarantees, political risk insurance, and support for private equity investment funds.
Established as an agency of the U.S. Government in 1971, OPIC operates on a self-sustaining basis at no net cost to American taxpayers. OPIC services are available for new and expanding business enterprises in more than 150 countries worldwide. To date, OPIC has supported nearly $200 billion of investment in over 4,000 projects, generated $74 billion in U.S. exports and supported more than 275,000 American jobs.
About MicroEnergy Credits
MicroEnergy Credits is a s a financial intermediary which links microfinance institutions to the carbon markets when they lend for clean energy. Founded in 2007 and based in Seattle, Washington, MicroEnergy Credits works with Microfinance Institutions and Carbon Emission Reducers around the world. MEC is a for-profit social enterprise financed by impact investors. Today, MEC reaches over 80,000 households with clean energy services in partnership with 20 microfinance institutions.
