The Global Shield Solutions Platform (GSSP), a pioneering financing vehicle aimed at assisting vulnerable countries in effectively tackling loss and damage exacerbated by climate change, was officially launched on June 9, 2023.
The momentous occasion took place at the Gustav-Stresemann-Institute in Bonn, Germany, during the InsuResilience Global Partnership Annual Forum.
With the frequency and intensity of extreme weather events on the rise, lower-income countries and vulnerable communities are bearing the brunt of escalating climate risks.
Recognising the urgent need to address mounting losses and damages, the Vulnerable Twenty (V20) Group of Ministers of Finance and the Group of Seven (G7) nations have committed to working together to establish a Global Shield against Climate Risks.
Through its various financing vehicles, the Global Shield aims to provide cohesive, sustained, and better-coordinated financial protection against climate risks.
The GSSP is a multi-donor grant facility that will play a pivotal role in supporting partner countries in developing and implementing financial instruments geared towards enhancing preparedness and facilitating more reliable disaster responses.
By increasing the availability of pre-arranged finance, which swiftly disburses funds before or immediately after disasters occur, through mechanisms such as regional risk pools, contingency funds, and shock resilient loans, vulnerable countries can mitigate the impacts of disasters, bolster their economies, and ultimately save lives and livelihoods.
The GSSP offers comprehensive support to vulnerable countries, encompassing advice and grant funding for research and education, thereby laying the groundwork for locally adapted financial solutions.
Additionally, the platform will provide funding for the development and subsequent implementation of climate and disaster risk finance and insurance solutions, significantly bolstering the financial protection of vulnerable nations.
Managed by the Frankfurt School of Finance & Management, the GSSP has garnered initial financial contributions from the Federal Republic of Germany, France, and Denmark, signifying their commitment to the initiative.
Sara Ahmed, V20’s Finance Advisor, expressed the pressing need for action, stating, “Time is not on our side, and only waiting for solutions would be an injustice. The GSSP is a hallmark of collaboration among the climate vulnerable economies and advanced economies.”
“The platform is a recognition that it would be unfair to let climate vulnerable economies, whose people are least responsible for the crisis, carry the risk of rapidly crumbling cliffs of financial and social protection. GSSP brings new resources to leverage the full potential of the pre-arranged finance toolkit to accelerate the building of protection systems.”
Chrysoula Zacharopoulou, Minister of State for Development, Francophonie, and International Partnerships, emphasised the importance of solidarity and inclusive protection for vulnerable countries and communities, saying, “When it comes to facing climate change impacts, what we need is solidarity, confidence, and inclusive protection towards the most vulnerable countries and communities. This is what the Global Shield is about, and this is the reason why France is committed to supporting this important and innovative initiative.”
“On the pathway towards COP28 and a few days ahead of the Summit for a New Global Financing Pact in Paris, we need more than ever a collective, ambitious commitment to building global resilience and prosperity.”
Lotte Machon, State Secretary for Development Policy at the Ministry of Foreign Affairs of Denmark, emphasized the critical role of the GSSP in scaling up pre-arranged finance to address loss and damage risks.
Machon stated, “Designed to increase the protection of climate-vulnerable populations, the GSSP provides an important part of Denmark’s contribution for responding to loss and damage.”
