Deep research into climate change’s impacts on vulnerable communities in India and Bangladesh

• Jul 30, 2025
• 1 min

As climate risks intensify, vulnerable populations in countries like Nigeria and Bangladesh face growing challenges to their livelihoods. Frequent and unpredictable disasters, such as droughts, floods, and cyclones occur with increasing frequency and unpredictability, rapidly eroding household resilience. Traditional climate interventions often overlook financial strategies at the household level. CGAP recognized this gap and partnered with MSC and Decodis to explore how low-income communities cope with these shocks and the role financial services play in their response.

MSC and Decodis conducted a comprehensive demand-side study in Nigeria and Bangladesh to generate firsthand insights into how vulnerable households experience and respond to climate events. The study used a mix of qualitative and quantitative research methods in both countries to capture detailed insights into financial behavior during and after severe weather events. The research documented how households prepare for and recover from climate shocks, the financial tools they use, such as microfinance, remittances, and mobile money, and what services they wish they had to support adaptation. MSC and CGAP then held a series of workshops to discuss the findings.

The research offered rich insights into the lived experiences of climate-affected communities and how they build and lose resilience between events. It highlighted gaps in financial services and guided stakeholders on how to design responsive climate-aligned financial products. These insights are shaping CGAP’s broader efforts to align financial inclusion strategies with climate adaptation goals.

Consultative Group to Assist the Poor (CGAP) commissioned the project.