adelphi in dialogue: Financing Schemes for Energy Efficiency and Cleaner Production

How can Micro, Small and Medium Enterprises be supported in their efforts for sustainability? Mikael P. Henzler shared some answers at the International Policy Forum "Eco-Innovation Systems in Developing Countries" organised by BMZ and GIZ.

The International Policy Forum "Eco-Innovation Systems in Developing Countries", organised jointly by the Federal Ministry for Economic Cooperation and Development (BMZ) and the Deutsche Gesellschaft für International Zusammenarbeit (GIZ) from 27th to 28th January 2014 in Berlin, was to find ways to effectively promote eco-innovation systems in the German development cooperation partner countries.

On the basis of the inputs delivered by experts from the fields of academia, politics and business, sponsored by, explored the relevance of the topic and possible promotion approaches through peer-to-peer discussions and interactive workshops with government representatives and business leaders from emerging economies and developing countries (find the Forum's programme here).

One of the Forum's working groups took on the subject "Financing Schemes for Energy Efficiency and Cleaner Production in Micro, Small and Medium Enterprises (MSMEs) in India". Maike Lerch (Principal Project Manager, KfW Bankengruppe) and Mikael P. Henzler (Managing Director, adelphi) presented a new KfW credit line for India KfW (Innovation Financing Programme): The principal financial institution for the promotion, financing and development of the MSME-sector in India is the Small Industries Development Bank of India (SIDBI). The financial support provided by the German Government to SIDBI aims to assist Indian MSMEs in introducing innovative climate- and environmentally friendly products, processes and services to the market. The intention is to close the existing funding gap for risk capital by simultaneously supporting SIDBI with the further development of its financing products and its capacities for project assessment.