Risk financing for climate resilience (2013-2015)

Rural households and communities in the GMS employ a wide range of strategies to minimize the impact of climatic shocks. These include crop and labor diversification, personal savings, investments in semi-liquid assets such as livestock, and informal risk pooling arrangements among peers.

While helping communities cope with events with low and moderate impacts, these strategies may be insufficient as weather-related shocks become more extreme and frequent with climate change. A lack of effective climate risk financing mechanisms creates a cycle of vulnerability and compromises long-term development. To deal with extreme shocks, many poor households are forced to incur additional debts, distress-sell productive assets, reduce food expenses, and cut education spending. These strategies deplete productive assets, drive poorer households into chronic poverty, and undermine their capacity to adapt to climate change long-term. 

CEP investigated  the role of risk financing in climate change adaptation strategies for rural communities in the GMS. Initial work is a scoping assessment to identify viable local-level financial instruments and strategies that could provide households with financial protection. Community Development Funds will be looked at as a potential mechanism for risk financing initiatives such as savings, micro-insurance, and 'risk pooling.' The study looked at 28 communities involved in the Biodiversity Conservation Corridor project in Cambodia, Lao PDR, and Viet Nam. 

The findings of the study were summarized in a publication:  Risk Financing for Rural Climate Reslience in the Greater Mekong Subregion 


File Name Size Modified
Concept Note​-CEP Phase II Climate Change Adaptation.pdf 236 KB 18-12-2013
Concept Note​-CEP Phase II Risk Financing for Climate Resilience.pdf 228 KB 18-12-2013
CC Risk Financing Report​-Key Findings.pdf 3 MB 15-06-2015
CC Risk Financing Report.pdf 7 MB 15-06-2015
Household survey data.zip 5 MB 11-05-2016
Census data in Lao and Cambodia 2008 ​- 2009​_1.zip 1 MB 11-05-2016

Publish Date: 16th September 2013

Last Updated: 18th May 2017

See also

ADB Project to Modernize Irrigation Systems, Improve Agricultural Productivity in Viet Nam

27th November 2018

The Asian Development Bank (ADB) has approved over $100 million in financing to help the Government of Viet Nam install eight modernized irrigation systems in five drought-affected provinces, which will improve agricultural productivity, especially among farmers growing high-value crops such as coffee, peppers, grapes, dragon fruits, and mangoes.

More details

Lao PDR: Improving Lives and Saving Forests

10th December 2018

In the Lao People’s Democratic Republic, a community is creating products without damaging the environment, and empowering women in the process.

More details
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