GIF invests in climate-resilient housing solution in Indonesia.

GIF is pleased to announce that we have invested $460k in Build Change, a social innovator working alongside one of Indonesia’s largest microfinance institutions to develop loan products that enable women living on low incomes to invest to make their homes more resilient to climate shocks, particularly extreme heat.

Indonesia experiences consistently high temperatures and is in the top five countries globally for greatest exposure of vulnerable people to heatwave days. Extreme heat adversely affects health outcomes and livelihoods. Poorly designed, constructed and maintained houses mean that internal temperatures regularly exceed safe thresholds. Yet poor households may not be able to channel their limited resources towards making their homes climate resilient in the face of competing demands, and often also lack know-how and access to affordable solutions.

Build Change will respond to these challenges with an innovation comprising three components. First, the organisation has developed, and will refine, a suite of low-cost interventions to reduce home temperatures.

Secondly, Build Change is partnering with KOMIDA, one of Indonesia’s largest microfinance institutions, to offer Incremental Climate Adaptation Loans (ICALs) which will enable women to invest in climate adaptations for their homes. 

Thirdly, Build Change will train KOMIDA to use its innovative digital platform BCtap, which allows loan officers to assess, plan, and implement climate resilience strategies in collaboration with households. Together, these interventions will allow women to access affordable loan products to reduce heat in their homes. 

Since 2021, GIF has targeted investment at innovations with the potential to support the world’s poorest to build climate resilience through our Innovating for Climate Resilience sub-fund. With the help of GIF’s funding, Build Change aims to enable 2,000 women making less than $5 per day to invest into the climate resilience of their homes. This project will also generate valuable learning on the viability and effectiveness of ICALs, providing vital information for future resilience financing projects.