Innovation Lab

Financial Instruments for Resilient Infrastructure 

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Every year, hundreds of billions of dollars are invested in infrastructure, and much of it will be vulnerable to disasters.

With climate change, the number and severity of disasters is expected to increase, so the need for building resilient infrastructure has never been more important.

This has clear implications for financing, and was the focus of our first innovation lab.

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Every year, hundreds of billions of dollars are invested in infrastructure, a large proportion of which will be vulnerable in the event of a disaster.

With climate change, the number and severity of natural disasters is expected to increase, so the need for building resilient infrastructure has never been more important.

This will require significant financing.

Innovative financial instruments, therefore, need to be explored to help countries better manage risks and embed positive incentives for ‘investing in resilience’, up front.

The Centre, in collaboration with Lloyds, organised an innovation lab in March 2018, in London, to contribute to global policy discussions on financing for resilient infrastructure.

The lab focused on ways that new financial instruments could be used to improve the management of disaster risks, and crucially, to build incentives for risk reduction and resilient rebuilding.

Experts from across insurance, finance, engineering, humanitarian and development communities were brought together with the aim of developing solutions to specific cases – cases that either lead to more resilient physical assets, or to ensuring that assets are ‘Built Back Better’, following a disaster.

Outcomes of the Lab include a report identifying the challenges of implementing solutions, and recommendations on how to overcome these challenges. A report was produced from the Lab that sets out the challenges faced in implementing financing solutions for resilient instructure, and recommendations on how to overcome these challenges. The Lab was delivered by the Centre in partnership with RMS, Vivid Economics and re:focus.

 
 
 
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Financial Instruments for Resilient Infrastructure

INNOVATION LAB – SUMMARY

7 MARCH 2018