A new €4.26 million initiative, ResilientRemit, has been launched to help thousands of rural families in Honduras, Senegal, and Pakistan adapt to climate change and strengthen their resilience to environmental shocks. Co-funded by the European Union (EU) and implemented by the International Fund for Agricultural Development (IFAD), the initiative focuses on leveraging migrant remittances and diaspora investments by providing greater access to savings, credit, insurance, and other financial services to support climate resilience in rural areas.
The project was officially launched at the Fourth International Conference on Financing for Development (FfD4) in Seville, Spain. It aims to scale up the developmental impact of remittances, which are the largest and most stable form of external financing for low- and middle-income countries. By directing these funds into climate-adaptive initiatives, the project seeks to maximize their potential as a reliable tool for sustainable development.
EU Commissioner for International Partnerships Jozef Síkela highlighted the importance of remittances for millions of households and emphasized that enabling better use of these funds is part of the EU’s broader approach to managing regular migration. The initiative is designed to advance financial inclusion, climate resilience, innovation, digitalization, and financial education in remittance services, particularly in underserved rural regions.
IFAD President Alvaro Lario noted that when combined with appropriate financial services, remittances enable families to invest in long-term adaptation and resilience strategies. He stated that this investment reflects a shift in development finance, offering a scalable model to direct significant capital flows into climate adaptation in rural communities.
ResilientRemit also aims to reduce remittance transaction costs and promote digital and financial literacy, with a special focus on women and youth. The initiative will help recipients better manage remittances and climate risks and create avenues for diaspora members to invest in local job creation and value-added economic activities in their countries of origin.
Remittances and diaspora investments are increasingly recognized as vital sources of development financing, supporting sectors like energy, transport, digital infrastructure, and agri-food systems. The EU has prioritized efforts to reduce transaction costs and expand financial access, especially for disadvantaged groups such as women, enabling more impactful use of remittance income.
In 2024, remittances to low- and middle-income countries reached US$685 billion, surpassing foreign direct investment and tripling official development assistance. These flows are expected to grow to US$4.1 trillion by 2030, reinforcing their central role in global development finance. For many countries, remittances account for a significant share of GDP, such as over 10% in Senegal and Pakistan, and more than 25% in Honduras, often supporting rural households that face high levels of poverty and vulnerability.
To date, IFAD has implemented over 75 projects related to remittances in more than 50 countries, reaching 1.8 million people with financial education and services, as well as facilitating diaspora-backed investments. As public development financing declines, remittances and diaspora capital are becoming essential tools for building resilience, fostering inclusive growth, and promoting sustainable development. Achieving the global goal of reducing remittance transaction costs to 3% by 2030 could save migrant families up to US$18 billion annually.
