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

The report argues that limited access to finance hinders agro-value chain productivity and increases vulnerability to climate hazards. While some models, such as a coffee credit scheme in Uganda, show potential to reduce vulnerability by improving farm-level finance, the banking sector generally fails to account for climate risks. The document recommends that banks integrate climate risk into strategies, incentivize adaptation, develop new products through collaboration, and increase financial inclusion, particularly for women.

• Financial services generally do not incorporate the specific risks and opportunities presented by climate change into their core risk management processes.
• Insufficient access to finance along agro-value chains limits productivity, quality, and the ability of actors to repay loans, which further increases the negative effects of climate hazards.
• Improving access to finance can reduce vulnerability to shocks and stresses, as seen in a coffee credit scheme piloted by Centenary Rural Development Bank Ltd in Uganda, though such models may not yet explicitly account for climate risks.
• Technology is expected to lower transaction costs and increase the availability of inclusive financial services for value chain actors.
• To maintain competitiveness and profitability, banks should integrate climate risk into strategies, create climate-proof financial instruments, collaborate with partners like research and software companies for new products, and target women for greater financial inclusion.

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} }