At the beginning of 2022, the HLCG made five recommendations on how existing Climate and Disaster Risk Finance and Insurance (CDRFI) support could be enhanced to better fit the needs of the most vulnerable. The HLCG emphasized the need for increasing the share of pre-arranged finance, improving coordination of solutions in countries, informing and strengthening local capacities, enabling risk-informed decision-making, and creating long-lasting resilience impacts by linking CDRFI to broader resilience planning.
Building on these recommendations and demand for urgency from the V20, Germany introduced the G7 initiative “Working towards a Global Shield against Climate Risks” at the 6th HLCG meeting on 7 April 2022 and requested feedback from HLCG members. With a view to ensuring more systematic, coherent, and sustained financial protection, Germany mobilized support for the Global Shield in the G7. At their 8th V20 Ministerial Dialogue in the margins of the World Bank / IMF spring meetings on 21 April 2022, the V20 reaffirmed the urgency of the Global Shield to build local and regional risk markets. At the G7 Summit in Elmau in June 2022, G7 leaders committed to the initiative and tasked the G7 Development Ministers with delivering progress by COP27. Subsequently, the German G7 Presidency and the V20 jointly developed a concept for the Global Shield (GS) in close consultation with Program Alliance and HLCG members. The GS will increase protection for poor and vulnerable people by substantially enhancing pre-arranged finance, insurance and social protection mechanisms against climate-induced disaster risks. Greater financial protection and faster and more reliable disaster preparedness and response will help to avert, minimize and address losses and damages exacerbated by climate change in a cost-efficient and effective manner.
To learn more about the conclusion, please visit the Co-Chair Conclusions.