In this paper, EMN provides the first study on the development and trends of green microfinance in Europe: member, candidate and potential candidate countries. The study contains, but is not limited to, information about environmentally friendly initiatives developed by institutions that provide microfinance services in Europe and elaborates on their motivations, constraints and strategies. Their environmental engagement is analysed along five dimensions: environmental policy, ecological footprint reduction, environmental risk assessment, green microcredit provision and environmental, non-financial services. The results for European green microfinance are compared to green microfinance in developing countries when possible. The potential of European green microfinance is discussed and some possible policies to foster the development of this field are presented.