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According to the Bank’s website, the ADB's Microfinance Program (MFP), in collaboration with the Climate Change and Sustainable Development (CCSD) team, has developed a framework to promote climate adaptation financing for micro-borrowers primarily women engaged in agriculture in climate-vulnerable regions. This initiative is supported by a Technical Assistance (TA) component aimed at building climate awareness and resilience. The TA focuses on two levels: enhancing climate risk assessment and adaptation planning among microfinance institutions (MFIs) and partner entities, and promoting climate-smart agricultural practices among micro-borrowers and their communities.
The selection of Bangladesh, India, and Nepal is also guided by the strong positioning of MFP's partner MFIs in these countries. These MFIs offer (i) extensive geographic coverage, (ii) deep-rooted infrastructure and close ties with rural households, particularly women, (iii) adherence to client protection principles and fair lending practices, and (iv) robust operational and risk management systems integrated into increasingly digitalized models. These strengths make them well-suited to channel the activities under the climate adaptation TA effectively to vulnerable, low-income populations, providing a strong foundation for inclusive, locally anchored adaptation efforts.
The proposed climate adaptation financing, coupled with the TA, is designed to enhance adaptive capacity of the women borrowers in rural areas, in dealing with the adverse impacts of climate change, as well as recover from the impacts of extreme weather events more effectively.
ADB (Technical Assistance Special Fund): US$ 325,000.00
Cofinancing (Community Resilience Partnership Program Trust Fund): US$ 500,000.00
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