Bangladesh faces severe climate challenges, with rising temperatures, unpredictable rainfall, and frequent natural disasters threatening livelihoods. BRAC Microfinance has introduced innovative solutions that integrate financial security with climate-smart strategies to support vulnerable communities.

To safeguard livelihoods, BRAC Microfinance introduced climate-focused microinsurance products like Area Yield Index Insurance (AYII) and Weather Index Insurance (WII), protecting farmers from droughts, floods, and erratic weather. The Livestock Grow initiative extends similar security to livestock farmers, covering risks from diseases and natural disasters. Currently piloted in 200 branches, it is set for national expansion.

BRAC Microfinance is also promoting climate-resilient seeds, solar-powered irrigation, and precision farming to mitigate climate risks and enhance food security. Partnering with Haor farmers and Sundarbans fishermen, it has introduced modern harvesting tools and storage facilities, reducing post-harvest losses. Solar-powered irrigation pumps have decreased reliance on fossil fuels, making farming more sustainable.

Bangladesh ranks as the seventh most vulnerable country to climate change, with its agriculture, biodiversity, and livelihoods increasingly disrupted. Frequent natural disasters pose severe threats, while climate-induced migration has become a survival strategy as people lose climate-sensitive jobs due to low adaptive capacity. Our initiatives focus on climate-adaptive technology, biodiversity conservation, and resilience-building measures, including microinsurance, mechanisation, post-harvest storage, adaptive seeds, and tailored financing. Over three years, we've insured nearly 500,000 farmers, aiming to reach one million this year.

— Arinjoy Dhar, Senior Director of BRAC Microfinance

Through initiatives like Green Inception and Green Expansion, BRAC Microfinance has planted over a million trees in climate-vulnerable regions. This afforestation drive conserves biodiversity and aligns with Bangladesh's National Biodiversity Strategy and Nationally Determined Contributions (NDCs), combating deforestation and land degradation.

BRAC Microfinance's initiatives have insured 400,000 farmers, with BDT 4.8 crore in payouts, leading to a 20–30 percent increase in crop yields and a 40 percent reduction in harvest losses. Solar-powered irrigation has lowered farmers' energy costs by 60 percent, while thousands of palm trees now shield coastal areas from erosion.

Looking ahead, BRAC Microfinance aims to develop 100,000 climate-smart livestock entrepreneurs annually, enrol 1 million farmers in climate insurance, introduce Aqua Insurance for fish farmers, expand smart farming solutions using data-driven technologies, and establish community-led storage units to reduce food waste and stabilise markets.