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.
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.
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.