The Microfinance Initiative for Asia (MIFA) focuses on creating and enhancing institutional capacity for sustainable microfinance delivery in Asia. Initiated by IFC and KfW, MIFA counts BMZ and EU as investors and is managed by BlueOrchard, one of the world’s largest impact investment managers.

MIFA contracted IPC to support Microcred China, a leading microcredit company based in Sichuan province interested in exploring the potential of energy efficiency and renewable energy (EE/RE) lending. On behalf of Microcred China, IPC engaged in a review of the market landscape in Sichuan, exploring the potential for EE/RE lending.

During the course of the study, IPC experts:

• analysed the green lending market potential in Sichuan, with a focus on government policy, energy generation and usage data,

• existing and prevalent EE/RE technologies, existing green financing sources, and potential competitors and partners
• assessed Microcred China’s current products, organisational structure, and approach to gauge readiness to engage in green lending
• screened Microcred China’s portfolio to identify existing clients that represented opportunities or demand for green lending
• conducted on-site market research including an assessment of available EE/RE technologies, the identification of potential target sectors and clients, the identification of potential strategic partners, and the identification of potential barriers to green lending

The IPC green lending market review provided Microcred China with the comprehensive data necessary to consider the benefits and costs of a fitting green lending strategy and approach.