Greeny News: Fossil fuel subsidies must end, says Indian microfinance firm

Saturday, September 29, 2012

Fossil fuel subsidies must end, says Indian microfinance firm

10:09 AM |

Posted by Free Game Zone |

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organizations awarded urge world leaders to focus on renewable energy and to stop subsidizing fossil fuels

governments should eliminate subsidies to fossil fuels and focus on support of renewable energy, the CEO of a microfinance organization said this week awarded.

Speaking to the Guardian Manjunath, LH, Shri Kshetra Dharmasthala Rural Development Project for (SKDRDP) in southern India, which offers consumer loans for energy projects, he said. "Fossil fuels are subsidized most of the [Indian] government spends millions of dollars in subsidies. Must stop all subsidies to fossil fuels and increase the amount of clean energy. "

His comments came as the organization was awarded the Ashden gold at a ceremony in London on Wednesday night. Five organizations received a total of 120,000 pounds of Ashden, which each year recognizes the work "champions green energy" ideas that are using local sustainable energy to the fight against climate change and fight against poverty. The prize money is used to help increase the work of the winners. SKDRDP, which contributed approximately 20,000 loans for renewable energy projects in the state of Karnataka, was this year's winner, winning a prize of £ 40,000.

SKDRDP usually pays $ 300-400 (£ 190-250), which has a longer payback period of approximately three years. This can be extended to 10 years, depending on what the loan is used. Types of weekly payments are $ 3. Before obtaining loans for energy projects - which could be, for example, the creation of a biogas from livestock manure to provide power to reduce methane emissions - people have prove an income and are members of a "self-help" group. The organization lends money to those groups who, in turn, provide loans to members. Each member must submit a five-year plan on how it will spend the money. Interest rates are at 18%. So far, the organization has a history of 100% loan repayment energy.

However, although local solutions are important, Manjunath believes that drastic changes are needed at national and global levels to protect the environment and improve the living conditions of the poor. "He has the strength of will of governments to account," he said.

another winner the Ashden Awards, Tri Mumpuni, executive director of the nonprofit Institute for People-Centred Economy and Business (IBEKA) in Indonesia, working with communities to develop programs of micro hydroelectric power stations provide electricity, agreed that fossil fuel subsidies should be cut. This year, Indonesia is $ 16.6bn spent on fossil fuel subsidies, he said. "We must reduce subsidies for fossil fuels. The money spent on renewable energy and fossil fuels is not balanced." Mumpuni added that he would like to see decentralized energy supply to allow local resources to be better utilized.

Mumpuni organization helped set up 61 hydroelectric systems in Indonesia, which supplied electricity to 54,000 people and save 7400 tonnes of CO2 per year.