IISc _Centre for Finance

Green Inclusive Finance: Empowering Sustainable Growth for a Greener Economy

Mission: To enhance the capabilities of community-based institutions, enabling them to provide pertinent financial and livelihood development services to impoverished and underserved households.

Strengthening the Enabling Environment:

a. Livelihoods India Initiative

>Livelihood Agri Projects

>Livelihood Non Agri Projects

Focus on improving the livelihoods opportunities of small landholders, the important partner supporting our agri programmes is the Government and its promotional agencies like SFAC. While in a few states, provided support under the Rashtriya Krishi Vikas Yojana, ATMA, and National Agriculture Innovation. programme states under the National Vegetable Initiative and National Pulses Initiative. Besides the need to improve agriculture productivity and strengthen the backward and forward linkages, partnership with government department/agencies have also provided us with the opportunity of organizing the farmers into Farmer Producer Organizations (FPOs). Under this partnership, we promoted many FPOs, across 4 states. Overall, IISc -CF has incubated and is hand holding community institutions.

In addition to improving and enhancing productivity, towards developing “inclusive value chains” to enable greater benefits of the value chains to accrue to primary producers, in some programmes, has also initiated post-harvest interventions. Primary processing of a few spices has been initiated, largely engaging the womenfolk from the community. Women are organized into self-help groups and then federated to run the processing units. While some marketing of the spices happens locally, IISc-CF supports the efforts with branding and packaging and marketing these in the mainstream high value markets. For agri products, a brand styled as “Green Fresh” has been created, which has started to attract good markets.

Besides the farm sector, IISc-CF also implements a few large non-farm sector programmes.

b. Financial Awareness Initiatives

Importance of being client centric in terms of understanding their needs; Aligning products and services as per client needs; Effective channels of delivery and sustainable models; Banking on Self Help Groups; Maximizing Human Capital; Social Performance Practices; and Alternative Banking Models.

c. Organic Fach

>The Livelihoods India Conference

>The Microfinance India Summit

Two Major Focus Areas:

The focus on agriculture and to support and strengthen community institutions.

Objective:1 Micro Finance

Focuses on the concept of inclusive finance and microfinance as powerful tools to uplift communities and bridge the gap between the financially privileged and the financially underserved. The theme centers on the idea of empowerment, aiming to provide opportunities and resources to individuals who are often excluded from the formal financial system.

Objective:2 Green Finance

This theme revolves around the integration of inclusive finance practices into the green economy, with a focus on sustainable development, environmental conservation, and social equity. It highlights the potential of inclusive finance to drive positive change by channeling financial resources towards environmentally friendly and socially responsible initiatives.

Some aspects under this theme:

Primary Aspects (Micro Finance):

  1. Financial Inclusion for All: Showcase the importance of providing access to financial services, such as credit, savings, insurance, and payment systems, to marginalized communities, low-income households, women, and minority groups. Illustrate how inclusive finance can lead to economic growth, poverty reduction, and social development.
  2. Microfinance as a Catalyst: Highlight the transformative impact of microfinance institutions (MFIs) and how they enable the economically disadvantaged to create and expand small businesses, fostering entrepreneurship and self-reliance. Share success stories of individuals and communities who have benefited from microcredit and other microfinance services.
  3. Technology for Financial Inclusion: Explore the role of technology, including mobile banking, digital wallets, and online lending platforms, in promoting financial inclusion and making microfinance services more accessible to remote and underserved areas.

Secondary Aspects (Green Finance):

  1. Financing Sustainable Projects: Showcase how inclusive finance can play a vital role in funding green projects such as renewable energy initiatives, sustainable agriculture, eco-friendly infrastructure, waste management, and conservation efforts. Demonstrate how these projects contribute to mitigating climate change and promoting environmental preservation.
  2. Supporting Green Entrepreneurs: Illustrate how inclusive finance empowers green entrepreneurs and startups by providing access to capital, resources, and technical assistance. Share success stories of individuals who have created impactful green businesses through microfinance and other inclusive finance mechanisms.
  3. Social and Environmental Impact: Emphasize the importance of measuring social and environmental impact alongside financial returns when evaluating green investments. Highlight the significance of impact assessment tools and metrics in guiding investment decisions towards sustainable ventures.
  4. Green Financial Products and Services: Introduce innovative green financial products, such as green bonds, green loans, and eco-friendly investment funds, which allow individuals and institutions to invest in environmentally sustainable projects while supporting financial inclusion.
  5. Climate Change Resilience: Discuss how inclusive finance can contribute to building climate change resilience among vulnerable communities by enabling them to access resources for climate adaptation, disaster preparedness, and sustainable livelihoods.
  6. Financial Education for Green Initiatives: Promote financial literacy programs tailored to green economy initiatives, enabling individuals to understand the benefits and risks associated with sustainable investments and responsible consumption.
  7. Collaboration for a Green Inclusive Economy: Advocate for partnerships between financial institutions, NGOs, green enterprises, governments, and international organizations to foster a supportive ecosystem for green inclusive finance and enhance its impact.
  8. Policy and Regulatory Framework: Address the role of policymakers in creating an enabling environment for green inclusive finance by implementing supportive regulations, tax incentives, and sustainable finance guidelines.
  9. Educating Investors and Donors: Raise awareness among investors and donors about the importance of aligning their investments and grants with green inclusive finance principles to contribute to the transition towards a greener economy.

By focusing on this theme, the IISc promote the microfinance and concept of green inclusive finance, inspire investments in sustainable projects, and contribute to building a more resilient and ecologically responsible economy, ensuring that economic growth goes hand in hand with environmental conservation and social well-being.