More than four out of five of the world's unbanked adults – over 1 billion people – live in the most climate-vulnerable countries. Although the least responsible for climate change, they are the ones most affected by it. Alongside national and global commitments, another type of climate action is urgently needed to reach and empower people living in poverty: inclusive finance.
This CGAP paper features a foreword by the UNSGSA for Inclusive Finance for Development, H.M. Queen Máxima of the Netherlands, and Ajay Banga, President, World Bank Group, who call for placing practical financial services like payments, insurance, credit, and savings at the heart of climate action. For vulnerable groups like women, smallholder farmers, and small businesses, inclusive finance provides tools to safeguard and diversify their incomes, manage and recover from climate shocks, participate in the green economy, and improve their financial health.
Download: English (2.3 MB)