In response to the mounting losses and damages due to climate change, the Vulnerable Twenty (V20) Group of Ministers of Finance and the G7 agreed to work towards a Global Shield against Climate Risks. Through its financing vehicles, the Global Shield will provide coherent, sustained, and better-coordinated financial protection against climate risks.
One of its financing vehicles, the Global Shield Solutions Platform (GSSP) was launched at the InsuResilience Global Partnership Annual Forum on 9 June 2023. The GSSP is a multi-donor grant facility. It is mandated to support Global Shield partner countries in developing and implementing financial instruments that provide better preparedness and more reliable disaster response.
Based on articulated needs and demand, the GSSP will offer technical advice and grants for a wide range of interventions under three separate but interlinked components:
- Detailed risk analysis and capacity development;
- Structuring and design of Climate and Disaster Risk Finance and Insurance (CDRFI) Solutions; and
- Provision of Implementation Support, including support for climate risk insurance and other CDRFI instruments such as anticipatory and forecast-based risk financing, shock resilient loans and grants to enhance national disaster risk funds.
The structure and volume of GSSP support will depend on the respective individual concept and may encompass all three components.
Dr. Annette Detken, Head of the Global Shield Solutions Platform, said: “The Global Shield Solutions Platform represents a major step forward in giving the Global South a voice in jointly building local financial capacity and increasing the effectiveness and efficiency of post-disaster response. We welcome the opportunity to host the GSSP at Frankfurt School of Finance & Management. We build on our experience of providing sustainable and innovative CDRFI solutions. We value the commitment and expertise of our contributors, and the important role of the V20 in setting up the Global Shield and supporting the GSSP.”
Hon. Dr. Henry Kokofu, Special Envoy of the Climate Vulnerable Forum/V20 Ghana Presidency, held the opening remarks at the GSSP Launch Event (© Markus Quabach)