Protecting the world’s most vulnerable from catastrophic climatic disasters

Protecting the world’s most vulnerable from catastrophic climatic disasters

The World Bank Group has announced a Global Shield Financing Facility to help developing countries access more financing for recovery from natural disasters and climate shocks. The Global Shield against Climate Risk or Global Shield, in short, is a collaborative partnership between G7 and V20 to fast-track access to pre-arranged finance which is deployed swiftly and reliably before or soon after climatic shocks and disasters strike. The German government through its G7 chairmanship spearheaded the launch of the Global Shield.

Through the Global Shield, governments, communities, businesses, and households will have access to more financial protection instruments thus lowering overall impact of climatic disasters and shocks. The increased funding will make vulnerable economies more resilient, safeguard sustainable development, and protect the lives and livelihoods of the most vulnerable.

The Global Shield Financing Facility will channel grants to developing countries through World Bank projects or through projects prepared by other participating partners, including UN agencies and multilateral development banks. It will also work closely with key stakeholders, such as civil society organizations, risk pools, private sector and humanitarian partners.

According to Axel van Trotsenburg, World Bank Managing Director of Operations: “Access to disaster risk finance and insurance solutions for low-income countries is part of the World Bank’s strategy for helping them adapt to the growing risks of natural disasters. We will contribute to the Global Shield initiative through our analytical and advisory work, policy dialogue and country lending operations.”

So far, the Global Shield has received EUR 170 million from Germany and more than EUR 40 million from Canada, Denmark, France and Ireland. Further commitments from a coalition of partners are expected in the coming months. The first recipients of Global Shield packages – the ‘Pathfinder’ countries – include Bangladesh, Costa Rica, Fiji, Ghana, Pakistan, the Philippines and Senegal.

“Under the German Presidency, the G7 have committed to scale-up action and support on loss and damage and to work towards a ‘Global Shield against Climate Risks’, responding to the V20’s call. Germany stands by its responsibility to support poor and vulnerable people and countries in dealing with loss and damage. This launch sends a signal: We have heard the urgency and we are acting. We aim at overcoming differences even in challenging circumstances. Germany wants to be a bridge-builder,” said Svenja Schulze, Federal Development Minister of Germany.

A financing structure with three complementary funds forms the foundation of the Shield: (i) the Global Shield Solutions Platform, which builds on InsuResilience Solutions Fund, (ii) the Global Shield Financing Facility at the World Bank, and (iii) the Climate Vulnerable Forum (CVF) & V20 Joint Multi-Donor Fund.

Further details on the Global Shield here and here

BMZ: Global Shield against Climate Risks 

Photo Source: v-20.ORG