Small- and medium-sized enterprises (SMEs) are crucial stakeholders when it comes to climate change adaptation finance on the ground since local companies and communities are directly affected by climate change. However, despite the fact that local businesses and communities are in urgent need of suitable financing instruments, SMEs face significant financing challenges in many developing and emerging economies, particularly with regards to climate change adaptation.
This Innovation Brief presents six innovative bottom-up adaptation financing approaches from the SEED Practitioner Labs Climate Finance 2018 in India, Thailand and Uganda, and shares overarching learnings about challenges and solutions. The Labs support creativity, innovation, and co-creation through its participative and collaborative prototyping methodology. The solutions for adaptation finance include among others microinsurances, financing models for climate-smart irrigation systems as well as information platforms and make use of innovative technologies, digital solutions and blockchain-based approaches.