As climate change becomes more of a global issue, many have wondered how changing weather conditions and environmental issues impact microfinance. In fact, many microfinance institutions such as Oikocredit have a strong mission to positively impact the environment and promote sustainability. With institutions that we support like Barefoot Power, we encourage eco-friendly lifestyles and work. We are therefore happy to hear about the new solar panel investment in Nepal that was finalized this week.

Microcapital.org reported that the UN Environement Programme (UNEP) just invested $1.8 million to a solar panel project in Nepal, distributed by Ace Bank through microloans. ACE Development Bank was established in Nepal in 1995, and since then has worked to help poor Nepalese through microfinance loans and other financial services–with a commitment to renewable energy. In this project, the bank will collaborate with UNEP as well as the Frankfurt School of Finance & Management to provide 5,000 village homes with solar panels.

This project is scheduled to terminate at the end of December, 2012, but monitering systems will observe progress until the end of 2014. Siddhanta Raj Pandey, CEO of ACE Bank expressed confidence that the solar panel installation will help bring electricity faciliites to rural regions lacking such necessary tools, and provide them with easy credit services–reported the Himilayan Times.

That’s part of what microfinance is: investment in social change. In order to facililitate a more developed world, we must make a conscious effort to imporve the quality of life and preserve our planet.