IDB Paper Highlights Microfinance Potential to Support Climate Change Adaptation
October 2011: The Inter-American Development Bank (IDB) published a brief, authored by María Elena Gutierrez and Xavier Mommens, which highlights the potential for microfinance to support climate change adaptation, as well as the risks that climate change imposes on microfinance schemes.
The brief, titled "Climate Change Latin America and the Caribbean: Risks for the Microfinance Sector and Opportunities for Adaptation," addresses the need for the microfinance sector to address their clients' vulnerability to climate change, underscoring that it affects their paying capacity. It further highlights the potential for microfinance institutions to contribute to adaptation to climate change since they can finance the purchase of assets that reduce their clients' vulnerability. The paper also identifies specific adaptation measures that could be addressed through microfinance schemes in the following sectors: water and sanitation; transport; tourism,; agriculture; biodiversity and coastal zones; and energy. [Publication: Climate Change Latin America and the Caribbean: Risks for the Microfinance Sector and Opportunities for Adaptation]