Approach

Community eco-credit methodology

“Community eco-credit” is an experimental, interdisciplinary methodology for set-up of locally owned and managed green revolving credit facilities. The methodology places a green financial instrument in the hands of informal financial self-help groups and is designed to create economic and behavioural incentives for individuals to participate in voluntary, self-determined actions which protect or restore vital ecosystems.

Detailed information about the methodology can be found in the Greenfi White Paper. It explains the methodology's benefits, costs, risks, and the trade-offs created by using the approach. The white paper also highlights what is unproven or not yet known, and sets out the key principles that should ideally be followed when using community eco-credit and the reasons for them.

Since 2017, the methodology has been tested at five pilot sites. Early results indicate that, with sufficient support, members of participating groups increase their contribution to ecological restoration and protection activities, repay loans, steadily increase their funds and gain experience in financial and environmental management. In our theory of change, this activity contributes to the building of community environmental, financial and social health.

What is an eco-credit group?

Community eco-credit groups are self-managed community groups of approximately 30 people which own and run a revolving credit fund which is loaned among group members. Groups include requirements for nature protection and restoration in loan terms. Detailed descriptions of the groups, their composition and governance can be found in the White Paper.

5-Step Approach to Setup of Eco-Credit Groups

Continue to Problem Definition