Climate change is projected to have severe economic impacts on low-income households globally as changes to systems of production alter their livelihoods and more frequent and intense climate shocks upend their lives. Financial tools support investments in livelihoods, provide security in the event of a shock, and promote resilience in its aftermath, but the emerging climate crisis represents specific challenges for financial services. For instance, large swaths of the global population need to invest in climate-resilient housing and adapt livelihoods to changing environmental conditions while financial service providers need to innovate business models to account for changing levels of risk.
Currently, there is not enough demand or supply side information, or data on the impact of government policies, to be able to offer stakeholders lessons about consumer needs in this landscape and what products and services are effective at meeting them. Financial Inclusion Week content on this topic delves into what is needed to fill that information gap and provides lessons from organizations working to help low-income households become more climate resilient.