Content:
From poverty and inequality to climate change and biodiversity loss – countries around the world are facing challenges to their development. Green, socially responsible financial systems can offer effective support: they provide the wider population and companies with important financial services like loans. They also mobilise capital and channel it into green investments.
Objective:
Inclusive, green and socially responsible financial systems are promoted in emerging economies and developing countries to support long-term growth, economic transformation and poverty reduction.
Approach:
The project advises the German Federal Ministry for Economic Cooperation and Development (BMZ) on transforming financial systems. The systems are to use sustainability criteria to channel capital into socially just, green development projects (sustainable finance). They can thus facilitate access to finance for underserved population groups, especially women and girls, and for companies (financial inclusion).
The project supports BMZ in international political processes. Its priority areas are:
• Promoting financial inclusion: The focus is on promoting the economic participation of women, girls, women entrepreneurs and particularly vulnerable population groups. The aim is for these groups to be able to use digital technologies. At the same time, it promotes better protection of financial customers in order to leave no one behind.
• Developing a sustainable financial market: The project works to ensure that sustainability criteria, particularly environmental and social criteria, are considered in financing and investment decisions. This also helps to align financial flows with the United Nations Sustainable Development Goals.