Gender action plan for SAP065: Harnessing Insurance for Climate Resilience in Indian Agriculture

Green Climate Fund Projects

Harnessing Insurance for Climate Resilience in Indian Agriculture

Gender assessment for SAP065: Harnessing Insurance for Climate Resilience in Indian Agriculture

Project Approved

India is home to approximately 150 million farmers, of whom 86 per cent are smallholders or marginal farmers. These farmers are disproportionately vulnerable to the impacts of climate change, which undermine agricultural productivity and threaten income and food security. While crop insurance and sustainable agricultural practices can provide an effective solution, crop insurance penetration remains low. Only around 25 per cent of farmers are insured, leaving the vast majority without any form of protection in the event of climate shocks.

This project is designed to improve the climate resilience of underserved farmers through a risk-transfer solution. GCF’s financing of USD 20 million will be leveraged to mobilise additional capital, building the solvency capital of Kshema General Insurance Limited, a licensed general insurance company that provides agricultural crop insurance for rural small and marginal farmers in India. This will augment its capacity to underwrite more crop insurance and expand support to farmers. In addition, Kshema’s digital technology will be leveraged to provide early warning signals and weather information to farmers, as well as training on sustainable agricultural practices.

GCF financing, together with other investors, are expected to further unlock the potential of the crop insurance market in India by addressing financial and non-financial barriers.

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

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Area of the economy in which actors engage in identical or related activities.

Financial actors and resources that are primarily directed towards climate change mitigation, adaptation and compensation.

An enterprise or financial institution that is usually majority-owned, backed or significantly controlled by nation-state governments.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

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Households employing domestic workers, for activities like cooking, cleaning and subsistence farming, for their own use.

Activities that involve the cultivation of crops and raising of livestock for food, fibre, and other products essential for human life and industry.

Either money or something of monetary value is transferred between two or more organisations, people or countries.

Social protection systems consist of policies that help people manage social risks in order to prevent poverty and maintain decent incomes and living standards

Actions or measures to adapt terrestrial systems to climate change.

This sector includes firms and individuals offering specialised expertise in fields such as law, accounting, consulting, science and engineering.

Conditions that enhance the feasibility of adaptation options. Enabling conditions include finance, technological innovation, strengthening policy instruments, institutional capacity, multi-level governance and changes in human behaviour and lifestyles.

Dedicated pool of financial resources for climate-related projects.

Activities of businesses and institutions that provide financial services and products to individuals and organisations.

A loan is a policy instrument where funds are provided to a borrower with the expectation of repaying the principal plus interest.

This sector creates and distributes information and entertainment through television, radio, print, and digital platforms.

Financial support to help individuals manage the effects of unexpected events, securing their livelihoods and increasing the resilience of people and businesses to the changing climate. It’s especially vital in developing regions where everyday risks, climate-related weather extremes, or crop failures can push people into poverty. Without insurance, people may have to resort to selling assets or cutting consumption to cope with losses.

woman and genders outside of the gender binary

Actions and measures to adapt and increase resilience of societies and the economy to climate change.

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Aligning the skills of the workforce with the requirements of the just transition.

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Activities involving the catching, processing, and selling of fish for food, recreation, and industry.

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Actions to adapt human health, healthcare systems and well-being to climate change.

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People who are less able to respond to the effects of climate change due to having limited financial or physical assets

This sector involves the distribution, treatment, and conservation of water resources.

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This sector provides communication services, software development, and IT solutions.

Jobs that contribute to preserving or restoring the environment. We include jobs which require a high amount of green skills or which spend much of their time on green activities, as well as jobs transforming polluting industries.

People whose health, both mental and physical, makes them more vulnerable to the effects of climate change

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A subsidy is a direct or indirect payment to individuals or businesses, typically provided as a government cash payment or a specific tax reduction.

Social and cultural groups that share collective ancestral ties to the lands and natural resources where they live, occupy or from which they have been displaced

People with different national or cultural traditions from the dominant population

Direct investments by the governments using public funds. This can be to support climate initiatives or integrate climate into other projects.

The release of heat-trapping gases, primarily from human activities such as burning fossil fuels, agriculture and industry.

Slow onset events evolve gradually from incremental changes over many years or from increased frequency or intensity of recurring events. As defined in the Cancun Adaptation Framework (2010), slow onset events include risks and impacts from rising temperatures, desertification, biodiversity loss, land and forest degradation, glacial retreat, ocean acidification, sea level rise, and salinization.

Actions or measures to adapt freshwater, coastal and marine systems to climate change.

Social inclusion is the process of improving the terms on which individuals and groups take part in society—improving the ability, opportunity, and dignity of those disadvantaged on the basis of their identity.

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Energy derived from biological compounds that are renewable due to their short life cycle within the carbon dioxide cycle.

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Activities of industries that extract natural resources, such as mining, oil, and gas, for commercial use.

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Fossil gas, commonly known as natural gas, is a fossil fuel consisting chiefly of methane with smaller amounts of other hydrocarbons and trace gases, found in underground deposits.

A long-lived, colourless gas, chiefly emitted from fossil fuel combustion, deforestation and cement production.

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A potent, short-lived greehouse gas, largely released from livestock, fossil fuel extraction and waste management.

The processes through which enterprises can identify, prevent, mitigate and account for how they address their actual and potential adverse impacts. Due diligence is the idea that reasonable precautions should be taken to avoid causing harm to people, the environment, or society. It also involves identifying and mitigating risks before they occur.

Gender action plan for SAP065: Harnessing Insurance for Climate Resilience in Indian Agriculture

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