CLIMATE CHANGE ADAPTATION

Problem

The current and future impacts of climate change pose substantial threats and costs to businesses and communities across Latin America and the Caribbean. These impacts will disproportionately fall on groups and sectors that are among the most vulnerable and least capable to identify, manage and adapt to these challenges: low-income populations, microfinance institutions (MFIs), micro, small and medium enterprises (MSMEs), and women and other traditionally excluded groups.

Objective:

The MIF aims to help MSMEs, MFIs and low-income populations become more resilient and capable of managing and adapting to the risks and impacts of climate change and variability.

MIF Solutions:

• The MIF supports innovative models and bottom-up approaches to climate adaptation, activities that raise awareness and expand the knowledge base, and measures to develop new products, tools and partnerships that can help the MIF’s core clients reduce their vulnerabilities to climate variability and change in the region. 
• Training MFIs to evaluate their portfolio and advise clients on how to adapt business models and insure against potential negative impacts from climate change;
• Supporting community-based adaptation for SMEs and communities, spurring collective behavioral changes to maintain livelihoods.

Results and Impact:

• MSMEs and low-income populations are less vulnerable or more resilient to the impacts of climate change and variability.
• MFIs will incorporate climate risk management into their portfolios and will provide green finance to their clients.
• New adaption models/methodologies will be developed through MIF projects to serve MSMEs, MFIs or low income population through adaptation initiatives.