Climate impacts are increasing and will affect especially those people, communities and countries that are already most vulnerable but have contributed least to the climate crisis. At the same time, the international Climate and Disaster Risk Finance (and Insurance) (CDRFI) architecture is not prepared to adequately provide them with financial protection. Major problems include: a lack of financing at scale to meet real needs; insufficient coverage of relevant risks and impacts; lack of comprehensive risk financing strategies and limitation to a narrow scope of instruments and an increasingly fragmented and complex CDRFI architecture.
Against this problem statement the Group of Seven (G-7) needs to deliver the following:
- Provide new and additional funding to support developing countries in managing climate risks and addressing loss and damage,
- Expand the CDRFI architecture to a system of global protection in order to provide coverage for all relevant climate risks and impacts; acknowledge the SMART Premium and Capital Support Principles,
- Reform the InsuResilience Programme Alliance to advance a strategic disaster finance approach,
- Develop and implement needs-based solutions jointly with vulnerable countries.
In the run-up to the G-7 Development Minister meeting in Berlin 18-19th May and the G-7 Heads of State Summit 26 – 28th June in Elmau, MCII and Germanwatch published joint key asks for a successful G-7 outcome.