Impact of Climate Change and Climate Hazzards on Individual Livelihood Vulnerability: Can Climate Finance-backed Initiatives Be a Solution?

Despite its limited resources, Bangladesh currently faces the challenge of minimizing the detrimental consequences of climate change and climate hazards while simultaneously fulfilling its obligations for climate change adaptation. As a result, it is imperative to conduct a comprehensive examination of the efficacy of Bangladesh’s climate financing in mitigating its vulnerability to climate change. Thus, this study aimed to investigate the impact of climate change and climate hazards on individual livelihood vulnerability, as well as the mitigation and adaptation strategies enabled by climate finance-backed programs. We have administered a structured questionnaire to 406 respondents from various coastal regions of Bangladesh, including Barishal, Khulna, and Chattogram divisions. Additionally, we have developed 12 hypotheses based on the existing literature to explore the study objectives. With Smart PLS 4.1.0.0, we implemented the PLS algorithm and a bootstrapping test. The study’s results indicated that the incidence of climate change catastrophes has a substantial impact on the vulnerability of individuals’ livelihoods to climate change, as well as their human, social, financial, physical, and natural capital. Our research also demonstrated that the implementation of measures to alleviate and adapt to climate change and its hazards could potentially mitigate the susceptibility of livelihoods to its adverse effects. At present, Bangladesh’s mitigation and adaptation strategies are inadequate. The implementation of methods to mitigate and adapt to climate change and climate risks has validated Bangladesh’s climate finance-backed programs. This study offers substantial insights into Bangladesh’s climate-related challenges, which will mitigate the vulnerability of livelihoods to the effects of climate change.