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Dec 04
2009
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Carbon-Neutral Biofuels - Addressing Climate Change and MicrofinancePosted by: Elizabeth Israel Tagged in: Technology , Poverty , Microfinance , Investments , Impact , Environmental Sustainability , Environment , Energy , Eco-Systems , Climate Change , Carbon Offsets , Agriculture
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USAID MicroLinks Note from the Field
Honduras: Blending Finance, Technology, and Training to Encourage Responsible Growth

La Mosquitia, one of the last remaining tropical forest areas left in Central America, is the most impoverished region in Honduras. Local communities, including the indigenous Miskito (or Mosquitia) people, have struggled to keep alive their distinctive cultural heritage while dealing with the threats of environmental and economic uncertainty.
Through a carbon-neutral biofuel initiative, the MOPAWI (from Mosquitia Pawisa) seek to generate equitable social development through sustainable microenterprise utilizing palm oil that is used for a variety of purposes. This approach will provide financial, social, and environmental returns in order to:
- Increase local employment while decreasing out-migration;
- Lower the cost of production and with lower agricultural labor;
- Reduce waste and increase product yield; and,
- Decrease emissions and deforestation.
“The beauty of this enterprise,” says David Hircock, Senior Advisor for Estée Lauder, “is the multidimensional, entrepreneurial approach. Many elements of this approach can bring much-needed cash into the economy and also negate the need for cash. For example, the indigenous community may not need to purchase diesel. Additionally, the enterprise incorporates important elements affecting local security issues, such as food, water, land and economics. Perhaps most importantly, this enterprise could show that the Mosquitia people are integral to the sustainable development of the area and local economy of Puerto Lempira, whereas at the moment they are so often marginalized. Now they can have a much-needed voice.”

The methods can make microcredit more reliable. Some farmers are not having time or motivation to go to many meetings to learn and proof their commitment as expected in the classic Grameen model. It also costs much to organize. Teaching farmers how to make the investments in their farms more secure and sustainable without significant extra costs can be a good start and test too. It can now be done with new, reliable, low-cost methods for direct seeding multipurpose trees fixing nitrogen, giving drought tolerant feed, wood and feed to sell in emergencies, soil-and-water conservation, fences, and land-demarcation. See our articles at my profile. Agricultural bank and micro-credit specialists in Africa, and farmers, have liked the idea.
The function of the meeting has not only been personal contact and peer pressure, but also to test who is able and willing to save a small amount regularly for the future. Learning and implementing direct seeding of trees with low input and maintaining them also give indications of who is able and willing to pay back on loans (and reduce risks in unpredictable climates and fragile soils etc.).




