Global Risk Modelling Alliance selected as key resource for the global shield initiative
COP27: Global Risk Modelling Alliance Selected as Key Resource for the Global Shield Initiative; further EUR 10 million funding provided; Pakistan Announced as first Pathfinder Country
- The GRMA will provide capacity building for climate-vulnerable countries in climate and disaster risk analytics
- Pakistan confirmed as first GRMA partner country to support its pathway towards better financial protection against climate risks
- As part of its EUR 170 million commitment towards Loss and Damage and the Global Shield, the German Government provides EUR 10 million to the GRMA
- GRMA is integrated into the Climate Prosperity plans of the V20 Group of Ministers of Finance of the Climate Vulnerable Forum
Sharm El Sheikh, Egypt: The Global Risk Modelling Alliance (GRMA), a joint public-private technical assistance programme with a mission to address the global imbalance in access to climate and disaster risk information, announces today a series of major milestones in its global deployment amid strong momentum at the 27th Conference of the Parties of the UNFCCC (COP27) in Sharm El Sheikh, Egypt:
- The Global Shield against Climate Risks cooperation led by the G7 and the V20 Group of Ministers of Finance of the Climate Vulnerable Forum (V20) has identified the Global Risk Modelling Alliance as a key resource, particularly during initial in-country climate risk assessments and subsequent capacity building. The Global Shield Initiative aims to build domestic, regional and international markets to handle climate risks in a highly effective way and to encourage a system that delivers the objective of resilience to economies and climate justice to communities.
- The German Government through the German Federal Ministry for Economic Cooperation and Development (BMZ), today confirmed funding for the GRMA of EUR 10 million. This is part of its EUR 170 million commitment towards Loss and Damage and the Global Shield. Administered via the InsuResilience Solutions Fund, the GRMA will be able to scale up its support to six further countries. This follows the initial EUR 11 million in funding announced in February, 2022. for an initial four countries.
- Pakistan has been announced as the first partner country deploying the GRMA. The GRMA aims at strengthening climate and disaster risk insights and will support Pakistan’s development of its first National Adaptation Plan and its first Long Term Climate Strategy.
- The V20 has adopted GRMA within its Climate Prosperity Plan as a starting point to mobilise resources for the implementation of a new pathway to secure maximed financial protection for V20 economies, enterprises and communities.
Ekhosuehi Iyahen, Secretary General of the Insurance Development Forum (IDF), said: “I am delighted with the progress and impact of the GRMA that we are announcing at COP27, showing significant momentum behind our mission to offer countries to level up and accelerate access to risk knowledge. Through country-led, co-designed risk programmes the GRMA will share practical industry knowledge, open data and technology. Countries will strengthen sovereign and city capabilities in risk insight, for application to policy development, adaptation planning, and disaster risk reduction.
The shortage of climate and disaster risk information inhibits the confidence needed for investment and risk finance focused on resilience, leaving vulnerable communities exposed. The GRMA addresses this global imbalance, and pools the best of global and local, public and private risk understanding. Indeed, during the development of the Global Shield concept, the GRMA has been identified as a key resource, particularly during initial in-country risk assessments and subsequent capacity building.
The announcements made during COP27 are testament to the tangible impact that this joint public-private technical assistance programme offers. Nick Moody, as Coordinator of the IDF Risk Modelling Steering Group, has been determined and ambitious in driving progress with the GRMA, and we are also grateful to the V20 Group and the InsuResilience Solutions Fund for their outstanding partnership in this important initiative. Our next steps after COP27 will see us continue to catalyse collaborations with sovereigns. We can’t wait.”
German Minister for Economic Cooperation and Development Svenja Schulze said: “This year, the suffering caused by the climate crisis in Pakistan has reached historic dimensions. Pakistan may well be the most powerful illustration of why the losses and damages that have already been caused by climate change are such an urgent issue for the climate conference.
It is quite appropriate that Pakistan is one of the pathfinder countries for the Global Shield against Climate Risks which we developed together with the most vulnerable countries. The Shield’s work starts from a thorough analysis of climate risks. Governments that know their risks can prepare better and minimise damage to the greatest possible extent. So it is good that Pakistan will be the first country under the Global Shield to gather the necessary climate data and build the knowledge needed for that.”
Dr. Annette Detken, Head of the InsuResilience Solutions Fund and public sector lead of the GRMA programme, stressed that the GRMA team will support Pakistan in strengthening its own capacities in measuring expected impacts of climate change and thus being better prepared for future disastrous events, adding: “ Given the significant losses and damages caused by climate change, GRMA will support Pakistan to identify adaptation measures and climate risk finance options best suited for respective risks across different provinces and districts of Pakistan.
Germany has committed an initial EUR 11 million to the GRMA programme, and I am very happy to announce that we will increase our support to the GRMA by another EUR 10 million this year as a further contribution to the Global Shield against Climate Risks.
Starting right now with Pakistan demonstrates that the Global Shield against Climate Risks puts words into action – just days after its launch here at COP27.”
Sara Jane Ahmed, V20 Finance Advisor, said: “The GRMA can be a key starting point to unlock the full potential of the Global Shield against Climate Risks for pre-arranged and trigger based financing and to complement these efforts with a doubling of adaptation.
The GRMA can support and underpin efforts of the V20’s Climate Prosperity Plans to maximise opportunities to adapt and build resilience.”
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