Christian Aid

Climate change is a defining challenge of our time, disrupting farming and food supplies and intensifying extreme weather events which threaten lives and livelihoods. In Bangladesh, Christian Aid piloted an innovative project, working with microfinance services to address climate risks and gender imbalance in local communities. It aimed to break the cycle of vulnerability which sees poor families – especially poor women – sink deeper into poverty and debt when disasters such as floods wipe out their assets and make loan repayments impossible. Aiming to drive change across the microfinance sector, the project has featured at international events including the UN’s annual climate change conference.

Within the next 25 years, it is predicted that 11% of Bangladesh will be lost to rising sea levels, affecting 15 million people.

Climate change has exacerbated the burden of debt; traditional safe loans can no longer be repaid due to income-generating activities being ruined by climate shocks.

Microfinance has been a valuable tool in helping many people in Bangladesh lift themselves out of poverty. However, it is not a magic solution, and many families find themselves spiralling deeper into debt as they take loan after loan to repay another. This burden of debt often falls on women, who often have little control over how the money is used.

In a world increasingly shaped by climate volatility, traditional microfinance models are no longer enough. We believe the solution lies in rethinking how loans are designed, assessed, and delivered—ensuring they support not just economic growth, but long-term climate resilience.

That’s why, through the Climate-Resilient Microfinance Project, we’ve equipped both lenders and borrowers with the tools and knowledge to build climate-smart financial strategies. Working through our experienced local partner GUK, we pioneered a new approach that integrates climate risk into microfinance discussions from the start.

This includes trialling pre-loan climate risk assessments, loss and damage loans for the most vulnerable groups, and climate-smart livelihoods training and support. We also supported the creation of community-based preparedness systems, including food banks and livestock shelters, and connected vulnerable borrowers to national social protection programs when disaster strikes. And to amplify the impact further we invested in support to increase women's economic agency, using this as a tool to drive wider social change.

What we achieved

The project achieved strong results across multiple areas, particularly in empowering women and strengthening community resilience to climate-related disasters.

• 91% of women reported increased savings and income, and 78% invested in things to improve production, like livestock and tools.
• 83% of women used savings or loans to cope with climate shocks, and 74% adopted climate-smart income activities such as duck rearing and vegetable farming. The leader of one women’s group said, “When the floods came, I didn’t have to borrow from the moneylender. I used my savings.”
• 87% of households reported having enough food during lean seasons, thanks in part to community-run food banks.
• The project contributed to shifting gender norms, with 69% of participants reporting fewer gender-based violence incidents and more open discussions on women’s rights.

‘I have been involved with the ITL project for a year and a half. Previously I didn’t have much cash. Now I am able to access loans from National Bank and also some loans from the ITL project. I was able to buy chickens and ducks. Through this project I am being trained to raise poultry and have also been trained in vegetable cultivation. With the profits I will pay loan instalments and save some of it. I’m also buying a goat. Previously men and women were very separate. Now we can discuss and understand that in fact, both men and women are equal, and if both work together, then our family life will be better.’ Farida Khatun, participant in the Climate-Resilient Microfinance Project

In Their Lifetime

In Their Lifetime is Christian Aid’s seed fund for innovation and learning, bringing to life bold and creative ideas from inspiring local organisations. In Their Lifetime allows us to test and trial new concepts, taking intelligent risks to spark change and end poverty more quickly.

How can I get involved?

Supported by a small group of engaged philanthropists, In Their Lifetime tackles big development challenges head on. Climate change is one of the biggest challenges communities face - by supporting communities to develop climate-resilient livelihoods, from farming to entrepreneurship, you can equip them to thrive despite the difficulties they face. Go to In Their Lifetime (ITL) - Christian Aid or email us at philanthropy@christian-aid.org

Biography

For 80 years, Christian Aid has been working as a global movement to:

·      alleviate suffering

·      expose and eradicate misuses of power

·      provide humanitarian support in crises and emergencies

·      work for sustainable and long-lasting change.

Our vision is for a world where global resources are equitably shared and sustainably used.