Energy. Poverty. Carbon Offsets. Crowdfunding.

The Economist article "Power to the People,"briefly highlights microfinancing as it relates to energy systems. True, many microfinance institutions lack the resources to identify reliable energy suppliers, but what if crowdfunding was involved? This would reduce the risk to large microfinance, as risk is spread through a variety of individual investors. A company by the name of "Energy In Common" may have the good solution to this. Here is a quick video overview of the organization:


Utilizing this unique crowdfunding platform, much like a kickstarter for energy entrepreneurs in underdeveloped markets, can help investors track their carbon offsets. The World Bank calculated the carbon offset market to be valued at roughly $144 Billion in 2010. Now a question to ponder is whether these carbon offsets belong to the investor or the entrepreneur.  If the carbon offset is generated in an economy where carbon is traded, should we deny this credit from the impoverished social entrepreneur? Granted carbon trading is currently being conducted only in developed economies, this could quickly change within the coming decades. 

Energy In Common (EIC) has a novel crowdfunding idea in that the investors receive their microloan shortly after it has been repaid by the green entrepreneur.  However, I can imagine continuously monitoring the status of the entrepreneur's carbon offset can be a bit tedious.  Furthermore, without a community approach to microfinance, it may be difficult to hold these entrepreneurs accountable for repayment.