Bangladesh tests climate finance for disaster-prone communities

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organisations are testing new approaches like grants, loans, insurance and green bonds. Read more at straitstimes.com.

DHAKA - On the sandy soil of the Padma riverbank in central Bangladesh, Ms Salma Akhtar, 35, cultivates maize and onions to support herself and her school-age daughter.

Ms Akhtar, for example, recently received a small grant from the international development charity Practical Action to raise the plinth of her house to a level flooding cannot easily reach. That includes electronic boards at local government offices showing weather-related information and phone voice messages sent out ahead of potential threats like floods.

Mr Colin McQuistan, Practical Action’s head of climate and resilience, said that, for insurance to work, “there has to be a very clear understanding of the risks and impact of floods for the farmers’ crops”, alongside measures to limit their losses.Up north across the border in the lower Karnali region of Nepal, farmer Salina Chaudhary, 28, tills a tiny plot of land - where she faces seasonal floods that are becoming more unpredictable and damaging.

Prof Saleemul Huq, director of the Dhaka-based International Centre for Climate Change and Development , said the insurance industry could help pay for the loss and damage caused by climate disasters. It is teaming up with several microfinance institutions to reach 4-5 million people with a combination of small loans and insurance, while also advising farmers on how to tend to crops and livestock for the best results.

Mr Sarder Akhter Hamed, head of microfinance at the Sajida Foundation, said Bangladeshi businesses were encouraged to invest in the green bond with government tax breaks.

 

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