The co-benefits of forecast-based financing and anticipatory action

This briefing provides an overview of the co-benefits of forecast-based financing (FbF) and anticipatory action, such as emerging successes and positive impacts associated with forecast-based financing interventions. When forecast-based financing, as an anticipatory action approach, was first piloted in 2014, it was seen as a risky, experimental approach. Since then, it has gathered incredible momentum and is now widely seen as a key feature of the disaster risk management ecosystem.

One of the main co-benefits to emerge from the interviews was the capacity-building potential of FbF. These benefits are not just for the FbF programmes themselves, but transferable to wider disaster management efforts. Capacity building is built into the FbF approach and is a key area for which funds are allocated. The benefits are further amplified by the robust analysis and research that go into the feasibility studies for anticipatory and Early Action Protocol (EAP) preparation.