The United Nations Environment Programme (UNEP), a division of the United Nations (UN) focused on protecting natural resources, will invest USD 1.8 million to increase the use of solar power in Nepal through its Sustainable Energy Finance Initiative (SEFI). The funds will be distributed via microloans disbursed by Ace Development Bank, a financial services provider in Nepal established in 1995. According to Surya Kumar Shrestha, a planning officer for the Alternative Energy Promotion Center (AEPC) in Nepal, approximately 200,000 solar panels have already been installed across the country. The investment from UNEP will reportedly allow a greater percentage of the poor to install the clean power source, no details were given on what portion of the cost that UNEP may be planning to defray or on the terms of the loans to be offered to end-users of the panels.
As of 2009, Ace Development Bank reported NPR 4 billion (USD 53.5 million) in total assets, NPR 2.6 billion (USD 34.8 million) in total deposits and NPR 677 million (USD 9.1 million) in total investments.
By Conner Brannen, Research Assistant
About United Nations Environment Programme (UNEP):
The United Nations Environment Programme was established in 1972 after a United Nations (UN) conference on the human environment. Its mission is “to provide leadership and encourage partnership in caring for the environment by inspiring, informing and enabling nations and peoples to improve their quality of life without compromising that of future generations.” It works with international organizations, government, the private sector and civil society to protect natural resources worldwide.
About the United Nations Environment Programme’s (UNEP’s) Sustainable Energy Finance Initiative (SEFI):
UNEP?s Sustainable Energy Financial Initiative (SEFI) is a platform that provides financial actors with “the tools, support and global network needed to conceive and manage investments in the complex and rapidly changing marketplace for clean energy technologies.”
Sources and Additional Resources:
The Himalayan Times: “Micro credit to 5,000 families for solar power,” July 15, 2010: http://www.thehimalayantimes.com/fullNews.php?headline=Micro+credit+to+5%2C000+families+for+solar+power&NewsID=249788
MICROCAPITAL BRIEF: Asian Development Bank Pledges $72m in Assistance to Nepal to Expand Microfinance to Rural Areas, June 24, 2010: https://www.microcapital.org/microcapital-brief-asian-development-bank-pledges-72m-in-assistance-to-nepal-to-expand-microfinance-to-rural-areas/
MICROFINANCE EVENT: United States Agency for International Development (USAID) Speaker’s Corner on Microfinance and Energy to Be Hosted Online From May 11 to May 13, 2010: https://www.microcapital.org/microfinance-event-united-states-agency-for-international-development-usaid-speaker’s-corner-on-microfinance-and-energy-to-be-hosted-online-from-may-11-to-may-13-2010/
MICROFINANCE PAPER WRAP-UP: Climate Change and Microfinance by Asif Dowla: https://www.microcapital.org/microfinance-paper-wrap-up-climate-change-and-microfinance-by-asif-dowla/
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