BMZ, IDF and UNDP Scale up Efforts to Strengthen Climate Resilience as Part of the InsuResilience Vision 2025
On the marge of the UN Climate Action Summit on the 23rd of September, the German Federal Ministry for Economic Cooperation and Development (BMZ), the United Nations Development Programme (UNDP) and the Insurance Development Forum (IDF) have agreed to raise ambition levels for climate risk finance and insurance. Through a Joint Programme Commitment, collective action will be strengthened towards the systematic delivery of technical assistance to 20 priority countries exposed to climate risks by 2025 in:
- Climate and disaster risk modelling,
- Risk model application,
- Risk transfer analytics, and
- Integration of risk transfer into development processes.
The Joint Programme Commitment aims to accelerate implementation of risk-finance and insurance programmes to contribute to achieving the InsuResilience Global Partnership target of 500 million insured beneficiaries by 2025, as laid out in the InsuResilience Global Partnership Vision 2025. This Commitment supports these climate-vulnerable countries to quantify their climate risk, use this to risk-inform national adaptation efforts, integrate long-term risk analytics into the country’s financial or development priorities, and gain access to cost-effective risk transfer solutions to absorb residual risks.
The Joint Programme Commitment draws on relevant expertise and capacities of the public and private sector partners
The UNDP commits to provide its experience in mainstreaming issues of risk management in the development engagement with countries. Furthermore, the UNDP will coordinate the development of regulatory and legal framework to allow for better climate risk management and risk financ-ing/insurance instruments, and provide technical assistance to integrate the analytical and climate risk modelling work.
The BMZ commits to steer the work of this package as a strategic partner, and in collaboration with the private sector mobilise financial resources to deliver this program, in alignment with the In-suResilience Vision 2025 and the work of other implementing programs.
The IDF private sector members commit to provide an openly accessible modelling platform and technical expertise, to provide financing in line with financial resources from BMZ, to co-fund the technical assistance package to countries under the programme and to offer up to US$ 5bn of risk capacity for climate risk insurance to support the targets under the InsuResilience Vision 2025.
The Joint Programme Commitment will draw on the relevant expertise and capacities of the public and private sector partners and aligns with the goals and targets of the InsuResilience Partnership.
More information on the agreement can be found in the press release here