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

This paper is a call to action for climate practitioners and financial services stakeholders from across public, private, and philanthropic sectors to work together to unlock the full potential of financial inclusion for scaling grassroots climate action. If they do this, inclusive financial services can: 

• Directly empower people living in low- and middle-income countries to adapt and grow resilient to climate change, as well as to participate in a just green transition. 
• Enable greater collective impact on the climate crisis by broadening the base of people able to take action. 
• Open new channels for climate finance to reach and support those who need it most. 
• Complement public sector-led climate efforts (e.g., facilitating climate-related social protection or subsidy programs, supporting a green transition in rural communities, etc.). 

Climate change also poses risks to inclusive finance that are starting to undermine global progress on financial inclusion. Concerted action is urgently needed to help financial services providers keep serving climate exposed populations. CGAP outlines five priority areas for collaborative action between climate stakeholders and the financial services sector.