PUBLICATIONS CENTRE
DEMYSTIFYING PRE-ARRANGED FINANCING FOR GOVERNMENTS: A STOCKTAKE OF FINANCIAL INSTRUMENTS FROM INTERNATIONAL FINANCIAL INSTITUTIONS
As the toolkit for pre-arranged financing expands, it is becoming increasingly challenging for governments to determine which instrument, or combination of instruments, best meets their needs. There is no silver bullet or single ‘best’ PAF instrument. To help governments and international partners better prepare for disasters, this report offers an in-depth assessment of pre-arranged financing tools using seven key criteria for ensuring pre-arranged financing reduces the human and financial costs of disasters.
ADDRESSING LOSS AND DAMAGE: INSIGHTS ON THE FUND AND THE GLOBAL SHIELD
Climate change is wreaking havoc on human lives, livelihoods and well-being in the world’s most vulnerable countries and communities. After decades of little to no progress, the agenda for loss and damage finance has shifted considerably in the past 12 months, with the announcement and launch of two major initiatives that aim to address aspects of this challenge. One is the Loss and Damage Fund agreed to at COP27, which has emerged from within the UNFCCC; the other is the Global Shield against Climate Risks, a joint G7 and V20 initiative.
This insight paper aims to improve the reader’s understanding of these two initiatives and provide insights into how thy may relate to each other, including possibilities for complementarity, and underlying tensions.
INNOVATIONS IN SOVEREIGN DEBT: TAKING DEBT PAUSE CLAUSES TO SCALE
This insight paper provides an overview of the key features of debt pause clauses, also known as climate resilient debt clauses. The paper highlights issues that may affect the incentives of sovereign governments and creditors to adopt them. It builds on confidential advice to the UK-chaired Private Sector Working Group by the Centre for Disaster Protection and has been informed by a private roundtable discussion with key legal, sovereign finance and development experts convened by the Centre in March 2023.
CONTRIBUTIONS AND CHALLENGES OF DISASTER RISK FINANCING AS A RESPONSE TO CLIMATE CHANGE INDUCED LOSSES AND DAMAGES
Human-induced climate change will continue to cause losses and damages, with vulnerable developing countries and communities that have contributed least to the climate crisis bearing the brunt of its consequences. Loss and Damage is the third pillar of the international climate regime in the 2015 Paris Agreement, alongside mitigation and adaptation.
In order to play a well-targeted and effective role, it is important to understand the applications and limits of Disaster Risk Finance as a response to climate-induced losses and damages. This paper explores how DRF instruments are being framed and understood within the panorama of Loss and Damage policy and finance agendas, highlighting areas of contention and sensitivity.