Join us in safeguarding mountain ecosystems from climate change.
Explore how private sector funding offers solutions.
While funding adaptation is difficult everywhere, this is considerably more challenging in remote, marginalized and forgotten mountain areas
Direly needed private capital is even harder to access than public sources currently funding the vast majority of adaptation solutions in the mountains.
But there exist privately funded instruments for targeting innovative and entrepreneurial adaptation: Remittances, Insurance, Microfinance and Philanthropy.
Microfinance services (MFS) have the potential to help the world’s poorest and most vulnerable populations - as mountain communities most often are - adapt to climate change. MFS is the delivery of loans, savings, insurance and other financial services to the poor so they can engage in productive activities. These activities help them build assets, stabilise consumption and protect themselves against risk.
The money sent back home by migrants as financial remittances have proven to increase the economic sustainability of mountain households in the longer term, as cases from Nepal or Tajikistan clearly show. These can be used not only to cover household expenses but may also contribute to local economic growth through investments including adaptation to climate change.
Mountains and mountain communities are, in principle, ‘huggable’ and provide opportunities for expanding philanthropic engagement to climate change adaptation. This can go far beyond the current activities of classical outdoor recreation equipment companies.
Insurance coverage plays an important role in protecting households, businesses and governments from the financial impacts of climate-related disasters. Insurance companies can provide incentives for adaptation through a reduction in insurance premiums and support adaptation directly during reinstatement.
