Microfinance for ecosystem-based adaptation (MEbA) in Peru and Colombia

Abstract

The consequences of extreme climatic events such as droughts and floods pose an increasing threat to the rural and peri-urban communities of Peru and Colombia. Although these communities have already taken measures to adapt to these adverse effects under the scenario of extreme climate change, the need to effectively diffuse and transmit information and knowledge regarding climate change and climate change resilience persists. The execution of investments in ecosystem-based adaptation activities aims to improve the communities’ resilience to these threats and to ensure the sustainability of ecosystem services on which these communities depend. The Microfinance for Ecosystem-based-Adaptation to Climate Change (MEbA) project was conceived in 2012 to promote and support the introduction of specific (micro) financial products and services. The main pillars of the project are: 1) assistance in the development and implementation of new financial products and services tailored to rural populations that are vulnerable to the effects of climate change (e.g. small agricultural producers and other local actors of the North Andean Region); 2) provision of customized capacity building to microfinance institutions (MFIs); and 3) awareness raising, carrying out training activities which address identified knowledge gaps, and meeting MFI client needs to increase climate change resilience with a focus on Ecosystem-based Adaptation via partnerships with key local technical actors. The focus of this paper is to present the MEbA project in detail, and to explore the role of MFIs with regard to adaptation to climate change and the link between ecosystems and adaptation to climate change.