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LightCastle Joins UNDP–SMEF Workshop on Blended Finance for Climate-Vulnerable CMSEs

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LightCastle Partners
October 12, 2026
LightCastle Joins UNDP–SMEF Workshop on Blended Finance for Climate-Vulnerable CMSEs

LightCastle Partners participated in a discussion and decision-making workshop under the UNDP–SMEF Blended Finance Programme on 29–30 August 2026 at Dera Resort, Manikganj. The workshop brought together SME Foundation, UNDP, partner banks, and insurers to explore how blended finance can improve access to credit for cottage, micro, and small enterprises (CMSEs) facing growing climate risks. 

With credit to small businesses declining, the discussions focused on developing assessment approaches that reflect both the financing needs and operating realities of CMSEs. Participants examined how the programme could help address lending barriers while supporting climate adaptation. 

On the first day, Prof. Dr. Ainun Nishat and Roufa Khanum from the Centre for Climate Change and Environmental Research (C3ER), BRAC University, discussed Bangladesh’s National Adaptation Plan and its relevance to CMSEs. The session provided context for incorporating climate vulnerability into the programme’s financing approach. 

On the second day, Shawkat Hossain, Team Lead for the programme, outlined tools designed to facilitate lending to these enterprises. Participants then tested the CMSE assessment tools through group exercises and identified areas for refinement. Their recommendations included capturing informal borrowing history, identifying specific climate hazards, incorporating bank verification, and prioritising climate-vulnerable sectors. 

The workshop underscored the importance of assessment tools that reflect how small businesses operate. The recommendations will inform the next stage of the programme as work begins on developing a pipeline of CMSEs for financing consideration. 


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WRITTEN BY: LightCastle Partners

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