Microfinance for Ecosystem-Based Adaptation - 11_II+_002 - 500 - Internationale Climate Initiative (IKI)

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Microfinance for Ecosystem-Based Adaptation

As of: August 2019

Objective and activities

The Microfinance for Ecosystem-based Adaptation (MEbA) project seeks a paradigm shift through private sector engagement in adaptation finance by facilitating microfinance products aimed at small-scale farmers to invest in ecosystem-based adaptation (EbA) options, thus improving their income and resilience to climate change. MEbA builds capacity in microfinance institutions (MFIs) in the Latin American, Caribbean and African regions to i) raise client awareness on climate impacts and EbA options; ii) train staff on climate change and conservation concepts; iii) manage agro-climate risks and improve information systems; iv) develop EbA micro-loans and services, and v) foster technical partnerships to assist clients in EbA implementation. With the MEbA tools, MFIs autonomously promote EbA loans and cater to their clients’ needs while improving efficiency and reducing costs. MEbA also works with governments and development banks to set an enabling environment for replication and scale-up.

State of implementation/results

  • The project supports several microfinance institutions (MFIs) in Colombia and Peru in adapting their portfolios to climate risks and developing microfinance products for ecosystem-based adaptation
  • The project promotes a lively exchange about microfinance for climate adaptation measures, for example by carrying out an annual workshop at which the microfinance institutions as well as government representatives and other partners can share their knowledge
  • The project also works at international level to disseminate and mainstream the newly created financing mechanisms, by producing materials that can be exchanged with microfinance institutions in other regions, as well as with investors and governments
  • Demonstration farms established to showcase eligible adaptation measures – As of December 2018, 12,825 microcredits with a volume of 17,2 Million USD (15 Million Euro) have been disbursed by partner MFIs as private investments for the implementation of ecosystem based adaptation measures
  • In addition, more than 10,000small-scale farmers have been sensitized on climate change issues while more than 3,000 have received some level of training regarding EbA methods (including 719 trained in project-financed EbA farms)
  • Some 1,300 MFI staff members have been sensitized on key aspects of the MEbA project
  • During the United Nations Environment Assembly (UNEA 4) in Nairobi, on March 13, 2018, BNP Paribas and UN Environment announced the partnership to increase access of small-scale farmers to climate adaptation finance
  • The MEbA team supported the organization of the 1st Climate Finance Forum in Ecuador in October 2018 in which the MEbA concept was presented as an alternative for sustainable adaptation finance and two partner MFIs (Bancamía and Fondesurco) showcased their experience
  • The project’s website www.unepmeba.org is constantly updated with pictures (goo.gl/…), current results (goo.gl/…) client stories from the field (goo.gl/…), events (goo.gl/…), publications and communication tools (goo.gl/…) developed by the project
  • The main project materials are currently being translated into French for replication in Africa

Project data

Country:
Benin, Colombia, Costa Rica, Dominican Republic, El Salvador, Madagascar, Peru, Senegal

Implementing organisation:
United Nations Environment Programme (UN Environment) - Panama

Partner institution(s):
  • Ministry of Agriculture and Rural Development - Colombia, Ministry of Environment (MINAM) - Peru, Ministry of Environment and Sustainable Development (MADS) - Colombia
  • Frankfurt School of Finance & Management gGmbH,Netherlands Development Finance Company (FMO)

BMU grant:
€ 4,999,952.45

Duration:
01/2012 till 09/2019

Website(s):

Video



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