Loss and damage protection BMZ achievements in climate and disaster risk finance and insurance
During its G7 Presidency, Germany, together with the V20 (Vulnerable Twenty, an alliance of countries particularly vulnerable to climate change), made a start on developing a Global Shield against Climate Risks. The Shield gathers activities in the field of climate risk finance and preparedness under one roof. As a result, people and authorities will be able to access more easily and more quickly the assistance that they urgently need when disaster strikes.
The Shield builds upon the InsuResilience Global Partnership (External link), which works towards comprehensive and active climate risk management worldwide. The Partnership facilitates cooperation among governments, the private sector, multilateral institutions, civil society organisations and research institutes.
German activities InsuResilience Global Partnership
Expanding climate and disaster risk finance and insurance solutions
The aim of the InsuResilience Global Partnership (External link) is to increase the long-term resilience to climate risks of the poorest and most vulnerable groups in developing countries and emerging economies. The expansion of climate risk financing and insurance instruments is intended to enable governments, enterprises and households to respond more quickly and effectively to natural disasters, thus minimising potential resulting costs.
During Germany's G20 Presidency in 2017, it joined forces with the UK, Fiji, Ethiopia and the World Bank to launch the InsuResilience Global Partnership as a joint G20 and V20 (External link) initiative. The V20 (Vulnerable Twenty Group) is an alliance of the finance ministers of the 68 countries most vulnerable to climate change. The Partnership now has more than 140 members representing industrialised and developing countries, civil society, the private sector, international organisations and the scientific community (as of October 2023). Germany is the biggest sponsor of this key initiative.
The various programmes within the Partnership support pre-agreed schemes, such as climate risk insurance, which provide protection against the financial risks of climate impacts and disasters. Quick assistance and recovery protect the livelihoods of poor and vulnerable people against the consequences of climate-related events. Moreover, the Partnership supports the development of comprehensive climate and disaster risk strategies at the national and local levels in poor and vulnerable countries.
The Partnership has set itself an ambitious target in its Vision 2025 (External link): to provide coverage to 500 million of the world's poorest and most vulnerable people by 2025. Currently, some 30 programmes comprising 475 projects are in progress under the umbrella of the InsuResilience Global Partnership in more than 120 countries. As a result, 190 million people had already gained coverage against climate risks in 2022.
Global Shield against Climate Risks
The Global Shield against Climate Risks (External link) builds on this experience, the existing structures and the close partnership with the V20. The Global Shield integrates the existing activities and makes them more readily accessible, while mobilising additional finance at the same time. Cover against climate risks is thus made more systematic, better coordinated and more permanent compared to previous instruments. The aspiration is to provide better coverage against climate risks for an even greater number of vulnerable people and countries, closing their coverage gap permanently in a step-by-step process.
As at: 03/11/2023