Climate change is exacerbating extreme weather events globally. Climate disasters are expected to increase in frequency and intensity. Already today, significant losses and damages are being experienced particularly in vulnerable developing countries. Traditional risk-sharing mechanisms and social safety nets do not match the scale and effect of such catastrophic events.
The G7 and the V20 have recognised that vulnerable developing countries need more support for dealing with climate-related damage. Consequently, the G7 countries have agreed with the V20 countries to set up the Global Shield against Climate Risks (the Global Shield), which was officially launched on 14 November 2022 at the COP27 climate conference.
The Global Shield aims to provide systematic, coherent, and sustained financial protection to scale up action and support for vulnerable people, communities, and countries facing increasing risk of losses and damages related to climate change. Over the past decade, governments, development organisations, the humanitarian system, and the private sector have introduced important financial innovations to address climate-related risks and disasters, paving the way for a global architecture for Climate and Disaster Risk Finance and Insurance (CDRFI). CDRFI offers many advantages to post-disaster financial instruments; however, it remains underutilised in many climate vulnerable low-income countries. This is due to affordability constraints, limited access, and lack of information.
As a central element of the Global Shield, the Global Shield Solutions Platform (GSSP) will contribute to shaping the global financial architecture supporting CDRFI solutions. The GSSP is one of three financing vehicles under the Global Shield. Its mission is to support the development of innovative climate risk finance and insurance solutions to lower the impact of climate disasters, make vulnerable countries’ economies more resilient, safeguard sustainable development, and protect lives and livelihoods of vulnerable people and communities.
Through its needs-based and competitive approach, the GSSP is a platform that offers vulnerable countries access to a wide spectrum of CDRFI solutions and respective implementing partners.
Target Countries And Target Groups
Target countries of the Global Shield-Solutions Platform (GSSP) are those on the Development Assistance Committee (DAC) list of official development assistance (ODA) recipients. In an initial step, the V20 have determined a list of pathfinder countries (Bangladesh, Costa Rica, Ghana, Jamaica, Malawi, Pakistan, the Pacific Islands, the Philippines and Senegal). Following a stocktake, gap analysis and needs assessment to be conducted within an inclusive and country-led in-country dialogue under the Global Shield, countries are invited to submit their request for CDRFI support to the Global Shield.
Subsequently, additional countries will be eligible. Countries interested to receive support are invited to contact the Global Shield Secretariat.