15 November 2022.
The Global Shield Against Climate Risks initiative was launched on November 14, 2022 by the Vulnerable Twenty (V20) countries and G7 countries. While V20 countries represent 58 countries that are vulnerable to climate change, the G7 represent seven of the world’s most industrialized countries.
About the initiative
- The Global Shield Against Climate Risks initiative was launched at the 27th Conference of Parties (COP27) to the United Nations Framework Convention on Climate Change in Sharm El-Sheikh, Egypt.
- It is a social protection and insurance-based finance mechanism for loss and damage outside the UNFCCC process.
- It will provide pre-arranged financial aid that can be rapidly deployed to respond to disasters like the devastating flood that occurred in Pakistan in August 2022.
- It will help expand the financial protection instruments for governments, communities, businesses and households.
- These instruments will minimise the impacts of disasters by helping vulnerable economies become more resilient, ensure sustainable development and protect lives and jobs.
How will the initiative be implemented?
The initiative will be implemented in a way that it aligns with the vulnerable country’s financial and economic strategies so that the financing gaps are removed. This initiative will support countries in ensuring livelihood protection, social protection systems, livestock and crop insurance, property insurance, business interruption insurance, risk-sharing networks and credit guarantees. The support will be provided at the level of government, humanitarian agencies and non-profits so that the finances are present whenever necessary.
Pakistan, Bangladesh, Costa Rica, Fiji, Senegal, Philippines and Ghana will be the first to receive assistance under this initiative. The initial contributions for this initiative are provided Germany, Denmark, Ireland and Canada. The US, which is also part of this initiative, is providing funding for the African Risk Capacity – an insurance and disaster risk solutions company. Other countries like the UK and the international organizations like the UNDP and the UN Office of Disaster Risk Reduction are also backing this initiative.