Jacob Winiecki

As climate shocks grow more frequent, financial service providers need tools that go beyond portfolio protection. Contingent Lines of Credit (CLOCs) pre-arrange loan terms and eligibility in calm times, and release funds rapidly to enable coping when a shock occurs.

Low-income households are facing increasing losses from floods, droughts, and other climate shocks that disrupt income, destroy assets, drive underinvestment, and force harmful coping strategies like distress sales or reduced consumption. These same shocks can ripple through the financial system, affecting financial service providers (FSPs) as well, showing up as portfolio stress and rising defaults.

London Climate Week Event July 1, 2021 - 1 min read We believe digital finance and fintech can be a critical enabler in overcoming challenges in access and affordability for climate resilience solutions targeted toward low-income and vulnerable populations globally. However, few products and services operating at the nexus of digital finance and climate resilience exist in the market today, as the innovation ecosystem for this sector remains underdeveloped and fragmented.