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The objective of the European Microfinance Award 2019 “Strengthening Resilience to Climate Change” is to recognise organisations active in the financial inclusion sector that provide financial and non-financial products and services aimed at strengthening the resilience of vulnerable communities to the effects of climate change.
The financial inclusion sector has an enormous and important role to play in boosting the resilience of vulnerable communities to the effects of climate change. This role can include providing loans for investments in irrigation, drought resistant seeds or other adaptive solutions; writing insurance policies to support greater resilience to shocks; using remittance and transfer services to funnel aid in the aftermath of climate-related natural disasters; or facilitating clients’ long-term financial planning, including via savings products, to help them build more adaptable economic activities.
Financial services aimed at increasing resilience may be complemented by non-financial products and services that fill capacity gaps. This can involve: awareness-raising and understanding of climate risks through technical assistance and training; promoting construction standards that increase resilience to flooding and high winds; and incorporating climate risk assessments and forecasts of extreme weather into institutional planning – then helping clients use the data in their economic activities. All these approaches increase preparedness forfuture shocks, helping clients manage these shocks without resorting to costly coping strategies, such as taking on unsustainable levels of debt, or selling productive assets.
Out of the 41 organisations from 27 countries who have applied to win the €100,000, 3 have been selected as finalists:
APA INSURANCE LTD – KENYA
ASKI GROUP OF COMPANIES, INC – THE PHILIPPINES
FINANCIERA FONDO DE DESARROLLO LOCAL – NICARAGUA
The winner will be announced at the European Microfinance Award ceremony on the 21st of November 2019.