Agro-Value Chain Finance and Climate Adaptation: The role of the banking sector

This report examines the intersection of agro-value chain finance and climate adaptation, highlighting how limited access to financial resources hinders productivity and increases vulnerability to climate hazards. It argues that while some microfinance models are emerging, the banking sector must proactively integrate climate risk into its strategies and develop inclusive, climate-proof financial instruments to support sustainable development.

• The financial services industry generally fails to account for the specific risks and opportunities presented by climate change within its core risk management processes.
• Insufficient access to finance across agro-value chains limits economic returns, restricts re-investment, and reduces the ability of actors to repay loans, which in turn worsens the impact of climate hazards.
• Certain emerging models, such as the coffee credit scheme piloted by Centenary Rural Development Bank Ltd in Uganda, can reduce farmer vulnerability to shocks by improving farm-level finance, often aided by information and communication technologies that lower transaction costs.
• To maintain competitiveness and profitability, the banking sector should adopt four specific actions: integrating climate risk into management strategies, creating climate-proof financial instruments, developing new products with collaborators like research and software companies, and increasing financial inclusion, particularly for women.

APA

Bingi,, J. D. (2014). Agro-Value Chain Finance and Climate Adaptation: The role of the banking sector. International Institute for Sustainable Development. https://www.iisd.org/publications/report/agro-value-chain-finance-and-climate-adaptation-role-banking-sector

Chicago

Bingi,, Julie Dekens,Susan. Agro-Value Chain Finance and Climate Adaptation: The role of the banking sector. International Institute for Sustainable Development, 2014. https://www.iisd.org/publications/report/agro-value-chain-finance-and-climate-adaptation-role-banking-sector.

Wikipedia

{{cite report |last1=Bingi, |first1=Julie Dekens,Susan |title=Agro-Value Chain Finance and Climate Adaptation: The role of the banking sector |publisher=International Institute for Sustainable Development |date=18 June 2014 |url=https://www.iisd.org/publications/report/agro-value-chain-finance-and-climate-adaptation-role-banking-sector |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bingi2014agrovalue, author = {Bingi,, Julie Dekens,Susan}, title = {{Agro-Value Chain Finance and Climate Adaptation: The role of the banking sector}}, institution = {International Institute for Sustainable Development}, year = {2014}, month = jun, url = {https://www.iisd.org/publications/report/agro-value-chain-finance-and-climate-adaptation-role-banking-sector}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }