Developing a green microinsurance scheme for climate adaptation
Through the project, technical assistance will be provided to the Bolivian microfinance institution (MFI) Sembrar Sartawi, allowing it to develop an agricultural microinsurance scheme for its current client base. Additionally, the carbon footprint of the MFI will be measured and suggestions on how to gradually reduce it will be provided. Finally, an assessment of the exposure of the MFI’s credit portfolio to the effect of climate change will be carried out and a controlling tool to determine the exposure of the MFI’s clients to the negative effects of climate change will be developed.
The vulnerable smallholder farmers in the tropical and Andean regions of Bolivia will have access to an innovative microinsurance product that will help them assimilate the risks of climate change and to better withstand the negative impact of increasingly changing weather conditions. Additionally, by reducing its internal footprint, the MFI’s operations will also become more energy efficient, as an example to its clients to also be aware of a more sustainable use of energy at home and at work.