By Pallavi Rathod and Kalpesh Prajapati, AIDMI, India

The growing intersection of climate change and humanitarian crises raises an urgent question: how prepared is the humanitarian sector to respond to increasingly complex climate risks? AIDMI highlights – how extreme heat is emerging as a major but often under-recognised driver of vulnerability, particularly for small businesses, workers and small farmers.

Drawing on field experience, AIDMI’s response emphasised that climate change is altering the nature of hazards faced by vulnerable communities. Extreme heat is no longer limited to occasional hot days; it is increasingly characterised by prolonged heatwaves and higher night-time temperatures that reduce recovery time for workers and families. These conditions directly affect livelihoods. For small businesses and daily wage earners, extreme heat often results in shorter working hours, declining productivity, and rising health risks.

AIDMI’s field observations also highlight the growing co-location of hazards. Communities exposed to extreme heat frequently face floods, cyclones, or water stress within the same year. For small businesses and small farmers, these overlapping risks create continuous uncertainty for income and stability. In many places, coping mechanisms are already stretched, particularly in areas affected by displacement, fragile governance, or limited access to services.

Despite these pressures, communities are not passive recipients of aid. AIDMI’s work shows that local actors are already developing practical responses to climate risks. Small businesses, for example, are experimenting with shaded workspaces, improved ventilation, and adjusted work schedules to reduce exposure during peak heat hours. These locally driven measures demonstrate how adaptation often begins at the community level, even before formal policy responses emerge.

AIDMI also stresses the importance of linking early warning systems with early action. While meteorological alerts are increasingly available, the challenge lies in translating warnings into everyday decisions that help workers and families protect their health and livelihoods. In several cities, AIDMI is exploring ways to connect heat alerts with practical guidance so that communities can adjust work practices, manage exposure, and reduce risks during extreme heat periods.

Another emerging area is the growing demand for risk financing and insurance mechanisms among small businesses facing climate-related losses. Access to such mechanisms remains limited, yet it represents an important pathway to strengthen economic resilience in climate-vulnerable communities.

A key lesson from AIDMI’s experience is that resilience grows when affected communities are recognised not only as vulnerable groups but also as partners in adaptation. Small businesses, who contribute significantly to local economies, are already experimenting with solutions that can inform wider humanitarian and climate strategies.

As climate risks intensify, humanitarian preparedness must evolve to support these locally led innovations, strengthen early warning-to-action systems, and ensure that livelihood protection becomes central to climate-sensitive humanitarian action.

(The article is based on the presentation and discussion at the panel – “Humanitarian Crisis and Climate Challenges: Is the Humanitarian Sector Ready?” – that was organised by Norwegian Refugee Council at HNPW2026.)