Pakistan among seven states to get climate disaster funding

The Vulnerable 20 Group of Finance Ministers of 58 climate-vulnerable economies and the Group of Seven countries named Bangladesh, Costa Rica, Fiji, Ghana, the Philippines, and Senegal are the additional recipients of the package.

Global Shield Program

The pre-arranged financial support program known as “Global Shield” has been designed to be promptly implemented in the event of a climate calamity.

The Global Shield will begin its implementation right after COP27, according to a joint press release from the V20, G7, and the German Ministry of Economic Cooperation and Development.

Aid From the Developed Countries

Germany is contributing over 170 million euros as a seed investment, of which 84 million euros are the Global Shield’s core funding and 85.5 million euros are allocated for related climate risk finance instruments.

35 million Danish kroner (about 4.7 million euros) from Denmark, 10 million euros from Ireland, 7 million dollars from Canada, and 20 million euros from France are further key financing commitments to the Global Shield.

Initial donations from other nations total about 170 million euros. Donor contributions are anticipated to continue soon.

German Federal Development Minister Svenja Schulze stated that Germany was committed to upholding its obligation to assist governments and vulnerable individuals in coping with loss and harm. Schulze asserted that Germany was committed to upholding its obligation to assist disadvantaged and vulnerable individuals as well as nations in coping with loss and destruction.

“This launch sends a message that we are responding to the urgency. Even in trying situations, our goal is to get past disagreements. Germany aspires to be a bridge-builder, according to Schulze.

Remarks From the Recipients

This is a ground-breaking endeavor, said Ken Ofori-Atta, the finance minister of Ghana and V20 chair. He expressed the optimism that the pre-existing structures, whose performance has yet to be established, will gain from the funding window.

He noted that “our fiscal space is constantly under risk and the inflationary pressures of climate change are narrowing our options.”

Implementation of the Program

The Global Shield will support the implementation of “plans for closing protection gaps utilizing a broad variety of acceptable tools” in vulnerable nations.

These tools include, for example, credit guarantees, social protection systems, livestock and crop insurance, property insurance, business interruption insurance, risk-sharing networks, and livelihood protection at the family and corporate levels.

The Global Shield will support the integrated development of tools used to ensure that money is available when needed (money in), as well as the procedures to ensure that the money is spent on giving what the impacted people and communities need when they need it most (money out).

Benefit for Climate Disaster Hit Countries

The “Global Shield” will provide and facilitate far more and better pre-arranged funding against disasters, hence increasing protection for poor and vulnerable individuals.