Searching: Research & Analysis

Contingent Lines of Credit (CLOC): A Liquidity Tool for Customer Climate Resilience

As climate shocks grow more frequent, financial service providers need tools that go beyond portfolio protection. Contingent Lines of Credit (CLOCs) pre-arrange loan terms and eligibility in calm times, and release funds rapidly to enable coping when a shock occurs. This reading deck explores how climate CLOCs work, what design choices matter, and how they can complement savings, insurance, and other resilience tools.

Built to Adapt: Inclusive Financial Institutions in a Changing Climate

This Focus Note draws on CGAP’s multi-year engagement with dozens of institutions to examine how inclusive financial service providers can adapt their strategy, risk management, and product offerings to remain financially viable, whist also strengthening client resilience, in the face of increasingly frequent and severe climate shocks.

From Safety Net to Springboard

As climate risks intensify, there is an urgent need to better support low-income communities to adapt and build resilience. This paper highlights an untapped opportunity hiding in plain sight - integrating financial services into social protection programs – and outlines five priorities for funders, policymakers, and social protection professionals to unlock its potential.

Resilience for All: Why Inclusive Finance Can't Wait

The world faces urgent challenges as risks intensify and interconnect, amplifying vulnerabilities, especially for low-income populations and small and medium enterprises (MSEs). If left unaddressed, these vulnerabilities can create ripple effects with national, regional, and global consequences. This paper highlights the importance of inclusive finance as an indispensable component of resilience responses, and calls on everyone working on increasing resilience to leverage inclusive finance to enhance the reach, speed, and impact of their work.

Strengthening Financial Systems for Climate Adaptation

As climate-related shocks become more frequent, communities need access to finance that helps them cope with and recover from damage and loss, yet current efforts to strengthen financial systems’ resilience often overlook the importance of inclusion. This paper outlines how governments and funders can foster inclusive financial systems that enhance climate adaptation and resilience.

Building Climate Resilience at Scale in the Sahel

Already reaching over half the world’s population, social protection systems present an untapped opportunity to channel climate funds to help vulnerable communities adapt to climate change, enhancing the reach, efficiency, and impact of climate finance.

Exclusion Risks in Climate-Related Financial Regulation: An Analytical Framework

This working paper presents an analytical framework to identify the potential exclusionary effect of climate-related financial sector regulation on the incentives and ability of financial service providers to lend to vulnerable segments in emerging markets and developing economies.

8 Billion Reasons: Inclusive Finance as a Catalyst for Climate Action

We cannot tackle climate change effectively without inclusive financial services. CGAP outlines five areas for collaborative action between stakeholders working on climate change and those working on inclusive finance in order to leverage inclusive finance to scale grassroots climate action.

Climate Adaptation, Resilience, and Financial Inclusion: A New Agenda

In this Focus Note, CGAP calls for financial inclusion to be a cornerstone of action on climate adaptation, and proposes a new agenda for collaboration between financial inclusion and climate adaptation practitioners.