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Assessing the role of microfinance in fostering adaptation to climate change

This report analyses the lending activities of 22 microfinance institutions in Bangladesh and Nepal to assess the extent to which microfinancing can help the poor adapt to climate change. The authors find that microfinance is promoting some adaptation strategies such as crop diversification, better access to irrigation, and improved sanitation to reduce the risk of waterborne diseases. But they suggest that it could play a greater role in disaster preparedness and use of early warning systems.

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