The Role of Microfinance and Microfinance Institutions in Climate Change Adaptation

This report examines whether microfinance in its current forms contributes to household
adaptive capacity and how it can do so most effectively. It also discusses how Bangladesh’s
well-established microfinance sector can take advantage of its extensive delivery
infrastructure and good reputation amongst communities to be more involved in initiatives to
promote transformational adaptation, i.e. adaptation at scale. The report draws heavily on the
rich literature on microfinance impacts in Bangladesh as well as on discussions at two national
workshops on microfinance and climate change in 2013 in Dhaka that were hosted by InM.