A Global Shield Financing Facility has been announced by the World Bank Group to assist developing nations in gaining access to more funding for recovery from natural disasters and climate shocks.
The Global Shield Against Climate Risks program, which the G7 and V20 jointly unveiled today at COP27 in an effort to better protect the poor and vulnerable from disasters by securing more funding in advance of emergencies, will be supported by this facility.
World Bank Managing Director of Operations, Axel van Trotsenburg, said: “We estimate that by 2040, over 130 million people could be pushed into extreme poverty by climate change”.
Read also: LAWMA to teach students in Lagos about waste management
“Access to disaster risk finance and insurance solutions for low-income countries is part of the World Bank’s strategy for helping them adapt to the growing risks of natural disasters. We will contribute to the Global Shield initiative through our analytical and advisory work, policy dialogue and country lending operations,” he said.
Grants from the Global Shield Financing Facility will be distributed to developing nations via World Bank projects or initiatives created by additional cooperating partners, such as multilateral development banks and UN agencies.
Additionally, it will collaborate closely with important parties like commercial sector, humanitarian partners, risk pools, and civil society organizations.
Those who are susceptible to climate shocks and disasters will receive coordinated and consolidated financial help through the Global Shield Financing Facility’s financing of integrated financial protection packages.
Investments in catastrophe risk reduction and climate adaptation will be complemented by these financing packages.
By providing private financial solutions like insurance and other risk transfer instruments like disaster bonds, such packages will also empower and mobilize private resources for better financial resilience.
Germany and the United Kingdom have long been partners of the World Bank in risk financing, and it has contributed significant expertise to the creation of the Global Shield Against Climate Risks.
The Global Risk Financing Facility, which was started in 2018 and funded country operations in Africa, Asia, and Small Island Developing States, is built upon by the Global Shield Financing Facility.
In addition to helping to raise more than $1 billion in private money, the program has been matched with $3 billion in World Bank funding.
Story was adapted from the Nation.
