Microfinance can help rural communities adapt to climate change

Kristin Palitza in IPS: Projects to fight climate change are being designed all around the world. But only five percent of them can be financed with the current international funds available, which means resources have to be used more wisely. Microfinance could be one solution. Climate change is one of the greatest challenges to development that the world has ever faced.

According to the World Bank, mitigation of its effects in developing countries could cost 140 to 175 billion dollars per year by 2030, while adaptation costs are expected to reach between 75 and 100 billion dollars per year between 2010 and 2050.

"The low-income masses will be most affected by climate change in their daily lives. We need solutions for mainstreaming adaptation projects to also include these people," said African Development Bank director for energy, environment and climate change development Hela Cheikhrouhou. She spoke at the Climate Investment Funds (CIF) 2011 Partnership Forum, held from Jun. 24-25 in Cape Town, South Africa.

The CIF, established by the World Bank and regional multilateral development banks, provide funding to support developing countries’ climate change mitigation and adaptation efforts. Even though more than a third of CIF money have so far gone to 15 African countries, few people in rural and poverty-stricken areas – who struggle most to access financing – have been able to benefit from the schemes, largely due to administrative barriers.

"We need to make sure that funds can be accessed by rural populations because there is urgency in making climate change projects happen on the ground," said Victor Kabengele, project coordinator at the ministry of environment of the Democratic Republic of Congo (DRC)….

Climbing beans growing in the province of North Kivu, Democratic Republic of Congo. Shot by Neil Palmer (CIAT), Wikimedia Commons via Flickr, under the Creative Commons Attribution-Share Alike 3.0 Unported