The role of financial services in supporting resilience and adaptation to climate change is frequently discussed in policy and practitioner forums and increasingly assessed in research
studies. Financial services, both formal and informal, have been recognised as crucial for managing livelihood risks, preparing for and recovering from shocks, and increasing productive investments; thus reducing poverty and promoting economic development. At the same time the importance of considering medium and long term climate impacts in financial service interventions and the potential of some products, such as microcredit or agricultural insurance, to increase vulnerabilities by introducing debt burdens or incentivising maladaptation
in farming practices have been highlighted.