Financing for Adaptation and Resilience to Climate Change in Latin America

An e-learning course for professionals in the finance and insurance sector raises awareness of the impacts of climate change.

Latin America  is a region highly vulnerable to climate change impacts, with rapid economic growth and development needs. Given these conditions, the finance sector in Latin America urgently needs to direct financial resources to climate action in adaptation. The finance sector needs to become a leader in combatting climate change and fostering sustainability in business practices, investment decisions across sectors, including private companies, pension funds, insurances, central banks and non-profit organisations. Its actions can have a cascading effect: companies engage in environmental and social sustainability and systematically influence others, their value chains, investors and communities. 

Further training on financing adaption and resilience 

This is where a training programme supported by the International Climate Initiative (IKI) comes in.

The e-learning course "Financing for Adaptation and Resilience to Climate Change in Latin America" is a key milestone in strengthening capacities within the finance and insurance sectors. The objective of the course is to raise awareness among professionals in the financial sector on the importance of identifying, assessing and managing the risks and opportunities that climate change represents for the banking and insurance sector. It aims to enhance the transformative role they can play in transforming climate risk into sustainable business opportunities. 

Target groups: Professionals in financial and insurance institutions

The course is aimed at financial and insurance sector entities in Costa Rica, Ecuador and Guatemala, including regulators, second-tier banks and financial and insurance operators, and is applicable to other Latin American countries. It is available in two versions: 

• a 12-hour version targeting at credit and risk analysts, executives, product developers, branch managers and people working in sustainability departments in the financial and insurance sector entities including regulators, second-tier banks and financial and insurance operator, and 
• a two-hour version for decision-makers and leaders.

Seven modules – from climate finance to insurance for smallholders

The course consists of seven modules ranging from topics such as climate finance to considerations for financing climate resilience.  Whether it is flood protection or agricultural insurance for smallholder farmers, well-managed climate risks can make the difference between economic collapse or reshaping global markets for economic resilience and social welfare. 

The course equips professionals from the financial and insurance sectors with the tools to integrate climate considerations into their operations, helping them to develop financial products to support resilience investments and support their clients in transitioning toward a more secure and sustainable future for societies. 

Successful launch of the e-learning programme

A few weeks after the launch last summer, 360 attendants out of more than 2000 enrolled have finalised the course Most participants are Latin America (Costa Rica, Ecuador, Guatemala, El Salvador, Honduras, Nicaragua, Colombia, México, Perú, Bolivia and Panamá).

By integrating climate considerations in financial instruments and allocating funds towards projects that promote environmental sustainability and social responsibility, the finance sector becomes a catalyst for sustainable development, benefitting society and the environment, whilst maintaining financial performance. 

The training is key for the finance sector to lead a transformative change where climate-resilient financial products foster sustainable leadership generating sustainable and lasting impact on companies, organisations and societies in the future.