Climate change & Green microfinance: The potential Role of Microfinance Sector in Bangladesh

Microfinance easing the access to finance, especially to marginal segments of the population who have no or limited access to formal financial services, thereby playing a significant role in reducing poverty and empowering marginalized communities. However, climate change and environmental degradation are creating new challenges not only to the sustainable operation of microfinance but also to the resilience and sustainable livelihoods of the vulnerable population. Therefore, this research explores the potential role of microfinance institutions (MFIs) in addressing the dual challenges of financial inclusion and environmental sustainability. The study investigates climate resilience efforts and policy frameworks to highlight how MFIs can scale up green financial products and services, thereby boosting climate resilience. It concludes with policy recommendations for addressing climate change through green microfinance initiatives.