Title: Can renewable energy microfinance promote financial inclusion and empower the vulnerable?
Authors: Andrea Gatto
Addresses: Wenzhou-Kean University, Wenzhou, Zheijiang, China; Centre for Studies on Europe, Azerbaijan State University of Economics (UNEC), Azerbaijan
Abstract: Energy microfinance is a promising asset for ensuring access to finance and electricity for the poor and women living in rural areas. Targeting vulnerable categories, renewable energy microfinance tools aim to promote sustainability and resilience policies to foster sustainable energy and ecological transitions. This research note explores the role of energy microfinance policies in facilitating virtuous loops for empowering the vulnerable, enhancing entrepreneurship, fighting poverty, and promoting social inclusion and environmental protection - as prescribed by the sustainable development mandate. Examining the microfinance-renewable energy-vulnerable nexus, the paper proposes a conceptual contribution and fungible development policy recommendations, sketching the main drivers of this linkage. To this end, a critical review of existing publications and successful world experiences is proposed. The analysis finds out a relevant potential for energy microfinance, whereby renewable energy expansion can be a strong player in shaping fresh microfinance strategies and prospects, providing ecological, social, economic and governance benefits and new research, policy, and practical agenda.
Keywords: vulnerable; renewable energy; microfinance; energy policy; sustainable development; women empowerment; poverty alleviation; entrepreneurship boosting.
DOI: 10.1504/IJESD.2023.132092
International Journal of Environment and Sustainable Development, 2023 Vol.22 No.3, pp.368 - 373
Accepted: 24 Feb 2022
Published online: 11 Jul 2023 *