Global Shield Financing Facility: Difference between revisions
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Revision as of 23:57, 7 February 2024
Sustainability - climate change - environmental risk management - V20.
(GSFF).
Author: Charitarth Sindhu, Environmental Sustainability & ESG Consultant.
The Global Shield Financing Facility is an international initiative launched in 2022.
It was established as a collaboration between the G7 and V20 nations to enhance the protection of underprivileged and susceptible populations from disasters, by pre-arranging protective financing before such events occur.
The Global Shield Financing Facility directs funds from developed nations to their developing counterparts through various channels, including World Bank projects, United Nations initiatives, and projects facilitated by other participating multilateral development banks.
In addition to national and local government entities, stakeholders involved in funded projects also include civil societies, humanitarian partners, private entities, and risk pools.
Examples include UNICEF, the InsuResilience Global Partnership, the Climate Vulnerable Forum, and the V20 Joint Multi-Global Fund.
Projects under this facility incorporate financial protection packages designed to provide coordinated and consolidated financial assistance to those vulnerable to climate shocks and disasters.
These financial packages will complement investments in climate adaptation and disaster risk reduction, while also facilitating the mobilization of private capital for enhanced financial resilience.
Global Shield Financing Facility (GSFF) case studies
In Malawi, the Global Risk Financing Facility (GRiF) employs analytical tools that utilize risk inputs, such as satellite-derived rainfall and vegetation data, to assess drought severity in various regions.
The Government of Malawi leverages this platform to increase social protection payments during disaster periods.
An innovative grant of US$ 4.2 million in the Crisis Risk Finance Analytics (CRFA) programme enabled the integration of the World Bank’s on-the-ground data with the European Space Agency’s advanced analytical technology.
This integration facilitates the scaling up of climate and disaster risk financing.
Morocco strategically employs the program to bolster its solidarity fund designed for catastrophic disaster events.
With a property insurance rate of less than 5%, a considerable number of homes remain inadequately shielded against potential disasters.
In response, the government has initiated a groundbreaking public-private financial protection endeavour, seamlessly blending the efforts of the government, the domestic insurance industry, and the Global Shield Financing Facility facilitated by the World Bank.
This collaborative initiative aims to provide much-needed support to uninsured households in the aftermath of calamities, demonstrating a comprehensive approach to disaster risk management.
Integrated Operational Capacity-Building Approach: Providing vulnerable countries with knowledge and expertise on financial risk management for disasters, climate shocks, and other crises.
The Global Shield Financing Facility (GSFF) website functions as a digital knowledge platform, attracting over 50,000 views annually.
More than 2,000 professionals have participated in GSFF annual technical talks.
Global Capacity Strengthening Program: Offers in-country support, access to international expertise, and customized training to empower government officials in developing countries to design and implement financial solutions for climate shocks, disasters, and crises.
The Core Knowledge Building Blocks of GSFF
The Financial Protection Academy: Training over 30,000 stakeholders in the World Bank’s and GSFF’s operational projects.
The Financial Protection Forum: serves as a global knowledge repository on Disaster Risk Financing (DRF) and acts as a comprehensive information platform, facilitating broader dissemination of publications, learning materials, and case studies.
It also functions as a virtual meeting space for knowledge exchange on DRF.
The DRF Community of Practice (COP): Established in 2016, the DRF COP includes over 10,000 of the most active DRF practitioners and professionals globally.
It enables clients to engage in discussions, build valuable relationships, and provides support to practitioners through a network of online and offline DRF COP events and activities.
See also
- B20
- Climate change
- Climate change adaptation
- Climate change mitigation
- Climate finance
- Climate physical risk
- Climate-related financial disclosure
- Climate risk
- Climate transition
- Climate-washing
- Corporate social responsibility
- Financial Stability Board
- G3
- G5
- G7
- G8
- G10
- G20
- G77
- Green Finance Study Group
- Institutional Investors Group on Climate Change
- Intergovernmental Panel on Climate Change (IPCC)
- International Institute for Sustainable Development (IISD)
- Loss and damage
- Multilateral development bank
- Natural capital
- Organic
- Paris Agreement
- SRA
- SRI
- Sustainability
- Sustainability Accounting Standards Board
- Sustainability bond
- Sustainable Development Goals (SDGs)
- Task Force on Climate-related Financial Disclosures (TCFD)
- Transition
- UK Climate Change Committee
- United Nations
- V20
- World Bank
- World Business Council for Sustainable Development
- W20
