Details - International Climate Initiative (IKI)

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Microfinance for Ecosystem-Based Adaptation

As of: August 2018

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 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

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):



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