NFIS should include green finance

National financial inclusion strategies are increasingly being framed as climate policy, not just banking policy. (afi-global.org) The Alliance for Financial Inclusion said in a 2021 guideline note that regulators can build inclusive green finance directly into national financial inclusion strategies, or NFIS, to manage climate risks and expand access to useful financial services. The note was written for member institutions drafting or updating those strategies. (afi-global.org) In plain terms, that means using the same policy playbook that expands payments, savings, credit and insurance to also help households and small firms prepare for floods, droughts, heat and other shocks. FinDev Gateway defines financial inclusion as access to affordable, appropriate financial services, and its climate collection argues those tools can support resilience and adaptation. (findevgateway.org, findevgateway.org) The push comes as climate risk is starting to erode financial inclusion gains. A 2024 paper hosted by FinDev Gateway said climate change is already undermining providers’ ability to keep serving climate-exposed populations, while a 2023 CGAP paper said businesses and households need finance to prepare for, cope with and recover from more frequent shocks. (findevgateway.org, cgap.org) Small and medium enterprises sit at the center of that debate because they account for about 90 percent of businesses and more than 50 percent of employment worldwide, according to the International Finance Corporation. The World Bank Group also says those firms face a $5.7 trillion finance gap in 119 emerging markets and developing economies. (worldbank.org, worldbank.org) Regulators have developed a shorthand for this approach: the “4 Ps” of inclusive green finance. The Alliance for Financial Inclusion groups policies into provision, promotion, protection and prevention, covering everything from green lending and guarantees to consumer safeguards and climate-risk rules. (afi-global.org) The warning from policymakers is that green rules can backfire if they are copied from large-market finance without adjustment. A December 2025 guideline note from the Alliance for Financial Inclusion said new sustainable finance standards can strain capacity and restrict access for vulnerable groups unless they are applied proportionately. (afi-global.org) Some countries have already started writing climate into their national strategies. A national financial inclusion strategy document for São Tomé and Príncipe says inclusive green finance is one of its pillars and defines it as policies that build resilience to the environmental, social and economic effects of climate change. (afi-global.org) The practical tools are familiar: savings accounts that help families absorb losses, insurance that pays after disasters, credit for cleaner equipment, and digital payments that move emergency support quickly. FinDev Gateway’s climate guide says providers, investors and policymakers all have roles in making those services work for low-income clients. (findevgateway.org, findevgateway.org) The argument now is less about whether climate belongs in financial inclusion plans than how fast governments can connect those plans to green finance, disaster-risk financing and supervision. The institutions pushing the idea say the cost of leaving them separate will fall first on the people and firms least able to absorb the next shock. (preventionweb.net, afi-global.org)