What is MEbA

Vulnerable rural and urban low-income communities comprise the majority of the target customers for the microfinance sector. Therefore, an increase in the adaptive capacity and resilience of these communities has a direct impact on the sector and its way of doing business. The MEbA scenario is presented below. To increase their resilience, small farmers need support in the management of ecosystems and climate-related risks. This reduces the productive risks. On the other hand, MFIs provide support in accessing financial products and services for EbA investment. This enables large scale implementation of EbA options.

Microfinance and Ecosystem-based Adaptation Information Figure
  1. MEbA solutions directly support income stabilization. Customers with more stable incomes are less vulnerable to climate impacts and have more resources for savings.
  2. MEbA solutions directly reduce exposure to climate risk factors. More resilient customers are better able to pay off their debts.
  3. The MEbA project provides participating MFIs with CEUS credit analysis software. Through good management and generation of data on risks, the MFIs become centres of expertise on specific rural and agro-climatic realities.
  4. MEbA solutions are designed with replication in mind. The development, provision and expansion of microfinance products and services is strengthened through better knowledge of customers and tailor-made solutions to mitigate risks.
  5. The MEbA project promotes sustainable microfinance, aimed at generating triple returns (financial, social and environmental) for investors. Through technical assistance partnerships, the participating MFIs offer their customers training on MEbA alternatives.
  6. The MEbA project provides tools to increase the adaptive capacity of MFIs and their customers based on sustainable solutions. Because of their social mission and service to vulnerable sectors of the population, MFIs are ideal partners for catalyzing ecosystem-based adaptation.
  7. The participation of other actors (government, academia, insurance companies, providers of inputs and technical assistance) is key for the replication of the model. The MEbA project promotes public policies and strategic partnerships aimed at sustainable rural development.