Climate change and microfinance

Abstract

Abstract The ongoing emission of greenhouse gases by human activities will continue to increase the temperature of the earth. Within the populations that will be most affected by global warming, the plight of many individuals is linked to the ability of microfinance institutions (MFIs) to adapt to the consequences of climate change. In this paper, we will explain the process through which climate change will impact the MFIs and their clients, and more importantly, how they can adapt to these changes. Further, we will show that in addition to being a threat, climate change also opens up opportunities for the MFIs and their clients. We recommend that the MFIs climate‐proof their existing products and services and develop new products and partnerships to deal with the consequences of climate change.

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