Representatives of some of the world’s most vulnerable countries have used the ongoing 24th Climate Change Conference of the Parties (COP24) in Katowice, Poland to push for a broader climate and disaster risk financing and re/insurance agenda.
Members of the Vulnerable Twenty (V20) group, which represents 48 of the world’s most vulnerable countries, used the event to advance financial responses to climate change and succeeded in moving the global debate forwards towards de-risking solutions, according to The Munich Climate Insurance Initiative (MCII).
The MCII, which is a charitable organisation hosted at the United Nations University Institute for Environment and Human Security (UNU-EHS), has been supporting the V20 with expertise and research.
“Climate and disaster risk financing solutions are crucial to help vulnerable countries and communities in dealing with climate risks,” said Soenke Kreft, Executive Director at MCII. “To be accessible, solutions have to be context-specific, affordable and sustainable.”
The Initiative claimed that the costs of climate risk solutions must be lower in order to facilitate accessibility, particularly for the lowest income segments, while the capacities of the public and private sector must at the same time be strengthened.
The COP24 is now in its second week, and key issues under discussion include the implementation of the Paris Agreement and the adaptation of global public and private financial flows to promote climate resilient and low-carbon economies.
An important forum for the V20 at the conference has been the G20-V20 InsuResilience Global Partnership, MCII noted, which is a new collaborative platform between countries, private sector, civil society and academia that aims to promote the financial protection and resilience agenda.
“By co-chairing the High Level Consultative Group of the Partnership, the V20 demonstrated their leadership role in shaping the paradigm towards systematically employing financial protection instruments. This is crucial for fostering inclusive development and economic resilience for vulnerable communities and countries,” Kreft explained.
The InsuResilience Partnership and its members currently support 25 schemes and programmes in 78 countries, and teamed up with the Insurance Development Forum (IDF) earlier this year to bring together more than 300 leaders from the re/insurance industry.
“The IDF is pleased to be part of the InsuResilience Global Partnership and is very much aligned with the bold vision it presents,” said Denis Duverne, Chairman of the Board of Directors of AXA and Chair of the IDF Steering Committee.
“Structuring successful public private partnerships will be key in addressing the already devastating impacts being felt in many emerging economies and by the most vulnerable,” he continued. “The Global Partnership presents an opportunity for collaborative action to urgently drive the development of much needed solutions.”
Laura Tuck, Vice President, Sustainable Development, of the World Bank, also commented: “The InsuResilience Global Partnership can catalyze a global shift toward risk financing, including insurance, for climate and disaster shocks. As the World Bank Group, we will build on the Partnership’s momentum so that timely finance reaches those that need it most when shocks or disasters strike.”
MCII and the UNEP Finance Initiative (UNEP FI), which are both member of the InsuResilience Partnership, have been selected to act as technical partners to the development of V20-led initiatives for enhanced financial protection and investments through the Sustainable Insurance Facility (SIF) and the Accelerated Financing Mechanisms for Maximal Resilience and 100% Renewable Energy.
“The Partnership aims to protect the beating heart of our countries – our people,” said Brenson S. Wase, Minister of Finance of the Republic of the Marshall Islands, one of the countries represented by the V20.
He added: “Going forward, we are thus committed to the Partnership and to supporting the successful implementation of disaster risk financing instruments, including insurance, to protect our people and create the long-term growth we need to survive and thrive.”
