GCPF AND PRASAC PROMOTE GREEN GROWTH IN CAMBODIA
The Global Climate Partnership Fund and Cambodia’s leading microfinance institution PRASAC are teaming up to promote “Green Lending and Green Growth” in Cambodia. A one-day event held on 24 May in Phnom Penh brought together stakeholders from the public and private sectors for an active discussion on how to facilitate the promotion of green technologies.
In 2016, the Global Climate Partnership Fund (GCPF) signed a USD 20 million green lending facility with Cambodia’s leading microfinance institution PRASAC. Through the lending facility, PRASAC is offering loans that improve energy efficiency and promote the use of renewable energy.
Given the institution’s outreach, the offering targets a very broad section of the population. Focus areas include loans for energy-efficient agricultural equipment, household appliances and rooftop solar installations.
In order to showcase the potential of green lending in Cambodia and promote the adaption of climate-conscious practices, PRASAC and GCPF teamed up to host the first “Green Lending and Green Growth in Cambodia” event held on 24 May in Phnom Penh.
Speaking on behalf of PRASAC, Pen Sovannsoksitha, Vice President & Department Manager Marketing & Communications and in charge of environmental issues, said: “Green lending provides an opportunity for us to scale up our business in a highly competitive market environment. With GCPF’s support, we are confident that we will be able to increase our green lending portfolio.”
“We’re happy that we could demonstrate that green investments are a viable market for financial institutions in Cambodia.”
Underlining his company’s pioneering role in Cambodian green lending, he added: “PRASAC’s energy efficiency loan portfolio was USD 7 m in 2017, with 430,000 l of Diesel saved annually."
Sathish Dhanapal, Energy Specialist for GCPF’s Asia Pacific operations, added: “We are proud to celebrate this important milestone in our partnership with PRASAC in promoting green lending in Cambodia. We hope this event will create a platform for practitioners to share their knowledge and to address challenges in implementing green lending.”
“It's important to make customers understand that energy efficient equipment creates real monetary value for them - not just cost.”
"It's important to make customers understand that energy efficient equipment creates real monetary value for them - not just cost," Sathish Dhanapal went on to say.
“Clients are moving up the energy ladder, aspiring to (better) access to electricity.”
Harsh Patnaik of Arohan Financial Services, the largest microfinance institution in eastern India, who had been invited to present his company’s experiences with green lending, explained: "Green loans are essential in microfinance, as clients are moving up the energy ladder, aspiring to (better) access to electricity."
To give participants an idea of how this can work, Sahil Khanna of Green Light Planet introduced their solar home systems marketed through 50 microfinance institutions in 65 countries.
“Quality equipment is key in this market – choose your partner carefully.”
Sahil Khanna of Green Light Planet
“Green Lending and Green Growth in Cambodia” was coordinated by MicroEnergy International GmbH and ACCESS Advisory and hosted by PRASAC, with the support of the Global Climate Partnership Fund.