Climate-vulnerable Countries Research Articles

Sending the Right Bill to the Right People: Climate Change, Environmental Degradation, and Social Vulnerabilities in Central Vietnam

Abstract In a range of international reports Vietnam is pointed out as among the 5 to 10 most climate-vulnerable countries, which are taking center stage in global climate change assistance and thus attracting huge amounts of foreign aid for research, mitigation, adaptation, disaster management, etc. However, for various reasons relating to global and domestic politics, climate change adaptation and mitigation in Vietnam are separating from general environmental management, while at the same time failing to address social inequality. From a global justice perspective this may seem irrelevant but when the resulting technocratic approaches are applied to aid programs, addressing climate change as an autonomous field, the problems on the ground become distorted. Based on field studies in central Vietnam, the paper argues that fragmented approaches risk missing the target of helping the most vulnerable population groups, while ignoring the structural and environmental issues, which in many cases constitute more immediate threats to their livelihoods.

Assessing the Role of Microfinance in Fostering Adaptation to Climate Change

Much of the current policy debate on adaptation to climate change has focused on estimation of adaptation costs, ways to raise and to scale-up funding for adaptation, and the design of the international institutional architecture for adaptation financing. There is however little or no emphasis so far on actual delivery mechanisms to channel these resources at the sub-national level, particularly to target the poor who are also often the most vulnerable to the impacts of climate change. It is in this context that microfinance merits a closer look. This paper offers the first empirical assessment of the linkages between microfinance supported activities and adaptation to climate change. Specifically, the lending portfolios of the 22 leading microfinance institutions in two climate vulnerable countries - Bangladesh and Nepal - are analysed to assess the synergies and potential conflicts between microfinance and adaptation. The two countries had also been previously examined as part of an earlier OECD report on the links between macro-level Official Development Assistance and adaptation. This analysis provides a complementary perspective on financing for adaptation. Insights from this analysis also have implications for OECD countries. This is because microfinance is also being increasingly tapped to reduce the vulnerability of the poor in domestic OECD contexts as well and may therefore have the potential to contribute to adaptation. The paper identifies areas of opportunity where microfinance could be harnessed to play a greater role in fostering adaptation, as well as its limitations in this context. It also explores the linkage between the top-down macro-financing for adaptation through international financial mechanisms and the bottom-up activities that can be implemented through microfinance.