CIAT Training Workshop on Inclusive Finance for Climate Resilience

Background

Climate change is a global challenge that impacts every corner of the world. However, it poses particularly significant challenges to developing countries, amplifying existing vulnerabilities and compounding development issues. The economic implications of climate change are particularly concerning for developing countries, putting their growth trajectories and societal well-being at risk. Compared to developed countries, many developing countries rely heavily on agriculture as a primary source of income, employment, and food security. Climate change can lead to erratic rainfall patterns, prolonged droughts, or devastating floods, all of which directly impact crop yields and livestock. Limited financial resources is also another primary reason why the economies of developing nations are under threat. Developing countries often lack the financial means to invest in essential infrastructure upgrades, adaptive measures or rapidly recover from climate-induced disasters.

Beyond financial hurdles, the lack of technological access and expertise further complicates matters. Many advanced adaptation measures, from early warning systems for extreme weather events to drought-resistant crop technologies, are out of reach for these nations. Their limited research and development capacities mean that they often rely on external aid or technology transfers, which might not always be forthcoming or tailored to their specific needs. Additionally, local knowledge, which can be crucial for effective adaptation, is sometimes overlooked in favour of one-size-fits-all solutions.

The United Nations Framework Convention on Climate Change (UNFCCC)[1] signed in 1992 is the foundational treaty that has provided a basis for international climate negotiations and climate finance support. Since its establishment the Convention has delivered landmark agreements such as the Kyoto Protocol (1997) and the Paris Agreement (2015). Subsequent agreements under the UNFCCC, such as the Kyoto Protocol and Paris Agreement, have established additional institutions, such as the Green Climate Fund[2], Adaptation Fund [3]and other specialised climate change funds and technical committees. These institutions provide the technical, advisory, and financial support to develop policies and support the implementation of the Convention, the Kyoto Protocol and the Paris Agreement.

Knowledge-building, public understanding and participation are essential in UNFCCC processes. This is in addition to the high-level principles established by its affiliate institutions particularly GCF and Adaptation Fund to ensure that organizations receiving Climate funds are accredited by meeting specific fiduciary standards and have the requisite institutional capacity to effectively utilize and report on climate funds issued.

AFRACA in collaboration with the Alliance of Bioversity International and the International Centre of Tropical Agriculture (CIAT) an affiliate research centre of the Consultative Group for International Agricultural Research (CGIAR) has entered a partnership to scale climate-smart financial innovations in Africa and strengthen institutional capacity and readiness among member institutions. This crucial partnership and training workshop on Inclusive Finance for Climate Resilience: Tools, Strategies, and Practice is borne out of the realization that financial institutions are under increasing pressure to design solutions that are both commercially viable and climate resilient but lack capacity in product design and technical know-how in accessing readily available climate funds.

Training approach and Methodology

This advanced training brings together Human-Centered Design (HCD), climate risk intelligence, and finance innovation tools to equip participants with the ability to bridge science and practice. Over four to five days, participants will engage with real datasets that support formulation of climate rationale for projects, live case studies, and facilitated working sessions that produce outputs directly usable in their institutions.

N.B.: Participants will be expected to bring their own laptops for seamless navigation of the climate risk tools

Training Objectives

1. Understand the role of climate risk data in designing inclusive financial products
2. Integrating climate credit scoring in financial product design
3. Demystify the process of seeking accreditation and highlighted opportunities available for fundraising for climate financing from the Green Climate Fund, Adaptation fund among other sources.
4. Behavioral/human-centric approaches for credit innovation. Identify gaps in credit delivery with a focus on behavioral and cognitive barriers for experience challenges.
5. Explore the CGIAR Adaptation Atlas (https://adaptationatlas.cgiar.org/) to identify risk exposures and adaptation options.
6. Link climate data to real-world financial use cases (e.g., insurance, credit, savings)
7. Practice using risk insights to inform product redesign and targeting

Core Components of the Training

Human-Centered Design (HCD) & Gender Integration

Participants will learn to move beyond generic product design by applying HCD principles to uncover the real needs, behaviours, and constraints of their clients—especially women and youth. Using persona-building, influence mapping, and financial behaviour profiling from real cases such as the ShambaShield Playbook, participants will redesign financial products to close gender and inclusion gaps.

Climate Data Intelligence with the Adaptation Atlas

Through guided navigation of multiple Atlas notebooks, including the Evaluate Climate Risks and Discover Solutions notebooks, participants will interpret hazard, exposure, and risk data for key value chains like dairy and horticulture. Practical map-reading and scenario analysis exercises will link Atlas outputs to portfolio planning, product risk adjustment, and client targeting—helping institutions translate climate science into lending and insurance strategies.

MELIA (Monitoring, Evaluation, Learning & Impact Assessment)

Participants will develop MELIA frameworks for climate-finance innovations. They will create simple theories of change, learn to select indicators that track both commercial and climate resilience outcomes, and practice designing feedback loops for adaptive management.

Investment Planning & Business Model Analysis

Through case simulations, participants will apply investment appraisal tools—such as cost-benefit analysis, return-on-investment modeling, and value-chain financial mapping—to assess the commercial and developmental viability of climate-smart finance products.

Climate Finance Policy, Compliance & Accreditation

Sessions will unpack various climate policy topics and national climate finance frameworks. Using live examples, participants will explore how to position their institutions to meet compliance and accreditation demands while leveraging climate policy for strategic advantage and how to access climate funding from international donors.

 

Target Audience

The training is expected to attract participants from;

• Banks, microfinance and other non-bank financial institutions (including especially staff from Credit and Risk Management Departments, financial innovation and product design and IT staff
• Central bank staff (especially from the Supervision and Financial Markets Departments).

6. Participation Fees

The investment for the training is US$ 600 for AFRACA members and US$ 800 for non-members. This will cover the facilitators’ fee, meals during the training, training materials as well as other administrative costs.

Accommodation and logistical expenses shall be borne by the participant.

The training fee should be remitted by bank transfer to AFRACA to the account outlined below. Please note that all bank charges including that of the intermediary bank shall be for the account of the remitter.

 

AFRACA Bank Details

Account Holder: African Rural and Agricultural Credit Association

Bank: Equity Bank Limited

Branch: Equity Centre Branch

Swift Code: EQBLKENA

Account No: 0810297232884

 

CONTACT:

For more information, kindly contact;

 

AFRACA Secretariat

Located at Central Bank of Kenya Institute of Monetary Studies (KSMS),

Off Thika Superhighway, Noordin Road, Next to de la Rue Security Print,

P.O. Box 41378 – 00100, Nairobi, Kenya

Cell: +254 726 080 454

Email: afraca@africaonline.co.ke

[1] https://unfccc.int/

[2] https://www.greenclimate.fund

[3]   https://www.adaptation-fund.org