The Global Shield initiative, a collaboration between the G7 and V20, aims to revolutionize Climate and Disaster Risk Finance and Insurance (CDRFI) support. Led by Germany in 2022, it focuses on enhancing pre-arranged finance, country ownership, and evidence-based gap analysis. The Global Shield Solutions Platform (GSSP) provides technical assistance and financial support to countries, addressing protection gaps through risk assessments and capacity development.

GSSP commissioned the Systemic Risk and Resilience group to develop a framework for identifying protection gaps and implementing CDRFI solutions in countries like Pakistan and Madagascar. In this project, we will analyze physical climate risks, quantify fiscal protection gaps, and recommend desirable risk management policies. Through simulating different CDRFI strategies, we recommend solutions to enhance resilience. Detailed tasks include:

  • Develop multi-risk profile of Pakistan (riverine floods and droughts) and Madagascar (storms and surges)

 

  • Construct a database of existing financing resources available to case study countries and propose various new CDRFI products to promote fiscal resilience.

 

  • Examine the benefits of CDRFI in covering fiscal protection gaps, as well as collateral benefits such as stabilizing the economy, unlocking economic growth potential, etc.