Climate change and poverty are closely interlinked. To protect livelihoods, and build more resilient communities, Opportunity International Australia is working with our health and microfinance partners to understand how climate change is impacting the communities we serve and developing products and programs to meet those needs.

The growing challenge of climate

Climate change threatens to exacerbate poverty and inequality globally. Women and people with disabilities are disproportionately affected by the effects of climate change, as they typically have less access to, and control over, resources that can help them manage and recover from the impacts of climate change.

• Over 1 billion unbanked adults, more than 80 per cent of the world’s unbanked population, live in the most climate-vulnerable economies.
• 100 million people are at risk of falling into extreme poverty due to climate change by 2030 – with the majority in developing countries.
• The direct damage costs to health from climate change are estimated to reach between US$2–4 billion per year by 2030.
• Just 5 five per cent of smallholder farmers recently surveyed by Opportunity’s partner in India had crop insurance.

People living in poverty in Asia, including the families supported by Opportunity’s partners, are among those most vulnerable to climate change. Impacts of climate change, including typhoons, flooding and drought, can impact the livelihoods, health and safety of families living in poverty.

Climate change compounds social and economic stressors experienced by families living in poverty, and can threaten safety, stability, and access to essential services. Families living in poverty are also much more likely to rely heavily on climate-sensitive industries like agriculture for their livelihoods.

^{Leela, a small loan client, has created a profitable agricultural business.}

Opportunity’s approach to building climate resilience 

Opportunity leverages our existing microfinance and health initiatives to holistically address the complex nature of poverty and support communities to build climate resilience on their pathway out of poverty.

Climate scorecard

In order to develop effective, client-focused solutions for people living in poverty, Opportunity and its microfinance partners need to understand the climate needs of affected communities.

Opportunity piloted a first-of-its-kind climate resilience scorecard in 2023, developed with Pahal, one of our partners in India, to understand the climate challenges farming families are facing and to support the development of new products and services.

The pilot survey found just five per cent of respondents had crop insurance, while less than two per cent had livestock insurance. The survey also found low levels of financial literacy, including a lack of awareness of the availability and benefits of insurance, and the role insurance can play in protecting against climate shocks, showing the need for education.

This year Opportunity is scaling up the scorecard. We will then work with our partners to develop products to help families to protect their livelihoods and build more climate-resilient businesses.

The findings from the survey will enable Opportunity to help communities in India and Indonesia to build climate resilience for years to come.

^{Smallholder farmers provide 1/3 of the world’s food, but are among the most vulnerable to climate change.}

Climate smart health education

The One Health approach recognises that human health, animal health and environmental health is intrinsically linked. Health education has largely overlooked climate change - we want to change that.

Opportunity’s Health Leaders initiative trains female microentrepreneurs to provide health education in their communities in Asia.

There is a great opportunity to empower these trusted community members to deliver climate-informed health education to improve the climate resilience of rural communities.

This year, Opportunity is working with health partners in India, Indonesia, Bangladesh and Nepal to develop climate modules, locally adapted for each geography, that will be incorporated into community health education.

Topics will include:

• Climate change and human health, particularly infectious diseases.
• Vector-borne diseases (like malaria) and neglected tropical diseases.
• Climate exposure and vulnerability.
• Global health impacts of climate change.

Health Leaders will be trained to deliver these new modules alongside the existing health curriculum. This climate-smart health education project will improve climate resilience alongside health outcomes.

Financing sustainable farming

Our financial institution partner Pahal, in India, has launched financing services for innovative biogas solutions. This new product aims to foster sustainable agriculture and environmental conservation for small and medium-scale dairy farmers who typically have livestock loans. By adopting biodigesters, farmers can economically reduce carbon emissions from their cattle farming businesses and transition away from fossil fuel usage towards cleaner, decentralised energy alternatives.

This initiative is enabling farmers to transform waste into a valuable resource, facilitating a transition to eco-friendly and sustainable farming practices.

Resilient Villages – Indonesia

In Indonesia, a project in partnership with TLM Foundation is focusing on building more resilient rural villages. This will be achieved through livelihoods creation and the establishment of productive village businesses; community health initiatives; disaster risk reduction and climate resilience training for communities.

East Nusa Tenggara in Eastern Indonesia is highly prone to climate-related extreme weather events including tropical storms and drought, and locals are already experiencing changes to rainfall patterns. In each village supported through this initiative, a village committee will be formed to identify and address climate risks and develop strategies for climate adaptation, building greater resilience in communities.

Learn more:

• The impact of our programs globally
  
• How we measure impact