Microfinance for Ecosystem-Based Adaptation
As of: May 2018
Objective and activities
The project aims to encourage the finance sector – particularly microfinance institutions (MFIs) – to introduce ecosystem-based adaptation measures in order to reduce the vulnerability of their clients to the impacts of climate change. To this end, the project partners are developing new strategies as well as adjusting and expanding the climate-related portfolio of MFIs. They are also developing and broadening the availability of additional microfinance products and services, primarily in the areas of rural development, sustainable water management and reduction of disaster risk. In parallel to this, the project is conducting campaigns to raise public awareness of microfinance options that take aspects of climate change adaptation into account.
State of implementation/results
- The project has supported 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 on the subject of 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
- 9,935 Microcredits with a volume of 12,5 Million USD private investments for the implementation of ecosystem based adaptation measures disbursed