- Peruvian municipal savings banks win praise for financing solar energy production at micro level
- Finalist for Latin America Green Award
BRUSSELS, 8 May 2020 – As the world grapples with Covid-19, the planet continues to face threats on environmental and climate change fronts. WSBI members around the world, including municipal savings banks in Peru, know this and act. They look for ways to spur the transition to a sustainable future, such being agents of change towards green micro-, small- and medium-sized enterprises.
Cutting greenhouse gas emissions through FEPCMAC "Ecoahorro"
The Peruvian Federation of Municipal Savings and Credit Banks, FEPCMAC, deploys its network of municipal savings banks not only take on a change agent role, but also implement public policy to slash greenhouse gas emissions by promoting use of clean technologies and renewable energy by the customers they serve.
Called “cajas municipales" in Spanish, those locally focused savings and credit banks, or CMAC, have looked local to solve global societal problems. They launched in March 2019 the country's first-ever “green" microcredits scheme. Called “Ecoahorro, tu crédito inteligente", or “Eco-saving, your smart credit" in English, the project deploys two business lines. First, a line for financing photovoltaic solar panels – with and without connection to a grid. The second line lends microcredits for light-vehicle electromobility such as fully electric cars and light trucks. To ensure momentum from day one, the programme first forged commercial alliances with select suppliers to “generate" a green portfolio for the municipal savings banks, or CMAC, system.
FEPCMAC designed the eco-driven financial product thanks to support from GIZ – the German Agency for International Cooperation. GIZ helped though its project called Financial Mechanisms for a Low-Carbon Development (FinanCC Peru), in contribution to the NDC Partnership – an body that works directly with national governments, international groups, civil society, researchers, and the private sector to fast-track climate and development action.
Ecoahorro in contention for top award
As the Ecoahorro project gains momentum, it also garners praise from Latin American industry experts. The project was named on 1 May as a finalist for the Latin America Green Awards in the sustainable finance category. Done in cooperation with the United Nations Development programme, the awards organisers chose Ecoahorro as one of the top three among 2540 projects from 25 countries participating. It was the only Peruvian project chosen in that category. The winner will be announced in August by a blue-ribbon jury in Guayaquil, Ecuador.
About the Latin America Green Awards
Granted since 2013, the award recognises each year some 500 projects in the region seeking to generate international visibility for the replicability and scalability of the projects. Aimed at energising the green economy, the awards display regional initiatives in 10 categories that are aligned with the Sustainable Development Goals (SDGs). The categories in are: Water, Forest and Flora, Biodiversity and Fauna, Human Development, Social Inclusion and Inequality Reduction, Energy, Sustainable Finance, Urban Management, Solid Waste Management, Oceans, and Responsible Production and Consumption. Learn more at www.premioslatinoamericaverde.com/