Assessing the role of microfinance in fostering adaptation to climate change

The current policy debate on adaptation to climate change has focused on estimation of adaptation costs, and ways to raise and to scale-up funding for adaptation. There is however little emphasis so far on actual delivery mechanisms to channel these resources to target the poor. In new research paper, the lending portfolios of the 22 leading microfinance institutions in Bangladesh and Nepal are analyzed to assess the linkages between microfinance support activities and adaptation to climate change. And, areas of opportunity were identified, where microfinance could be harnessed to play a greater role in fostering adaptation. Read this story here.

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