Focusing on micro and small enterprises (MSEs) is critical to climate change adaptation because these businesses provide livelihoods for the world's poor, who are particularly vulnerable to climate change, according to a report by the UN Development Programme (UNDP) and the World Resources Institute (WRI).

Developing countries need significant amounts of finance to help them adapt to the changing climate and follow a path of low-carbon development. The international community has set up multilateral funds to help support climate change mitigation and adaptation in these nations.