Embedding risk finance in integrated national financing frameworks

This policy note explores how Integrated National Financing Frameworks (INFFs) can support more resilient financing by embedding climate risk diagnostics and climate disaster risk finance and insurance (CDRFI) mechanisms into national financing strategies. Drawing on country experiences from the Maldives, Rwanda and Thailand, it identifies practical entry points across the four INFF building blocks — assessment and diagnostics, financing strategy, monitoring and review and governance and coordination — to help countries move from ad hoc crisis response to pre-arranged financing for resilience.

Key messages from the policy note include:

• Climate change undermines SDG financing and economic stability: Climate hazards lead to significant economic losses, increased public debt, reduced tax revenues and decreased private investmentThis increases the persistent financing shortfall for SDGs.
• INFFs are critical for climate risk integration and resilient financing: INFFs provide a strategic framework for countries to assess financial needs and risks, mobilize diverse funding sources and align investments with sustainable development priorities . 
• Case studies highlight diverse integration approaches: Country experiences from Maldives, Rwanda and Thailand demonstrate varying and promising approaches to integrating climate risk analytics and finance into INFFs, ranging from operationalizing disaster risk finance instruments to laying institutional and policy foundations for deeper integration