The impacts of climate change on people's livelihoods have been widely documented. It is expected that climate and environmental change will hamper poverty reduction, or even exacerbate poverty in some or all of its dimensions. Changes in the biophysical environment, such as droughts, flooding, water quantity and quality, and degrading ecosystems, are expected to affect opportunities for people to generate income. These changes, combined with a deficiency in coping strategies and innovation to adapt to particular climate change threats, are in turn likely to lead to increased economic and social vulnerability of households and communities, especially amongst the poorest.