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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, 16th November, 2022: 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.”
– ENDS –
Notes to Editors
Background:
About the GRMA
The Global Risk Modelling Alliance (GRMA) is an initiative of the V20 and the IDF and hosted by the ISF joint public-private technical assistance programme. The GRMA has three main components:
- A grant fund to help countries fill critical risk model and data gaps for public good
- A technical assistance team comprising risk practitioners combining both public and private sector expertise
- Open-source risk modelling technology, tools and standards developed by the insurance industry and optimised for public sector use
The GRMA will support participating countries in building, sharing and further developing locally-driven views of climate and disaster risk, across ministries of finance, asset-owning ministries, disaster risk management authorities and research institutions. Through local ownership of the analysis, sovereigns and cities will be better able to develop and report strategic risk profiles, initiate climate-resilient investments, and transfer residual risk to international markets.
In support of the GRMA’s public-good aims, member companies of the IDF have already committed funds and technology to the programme, including investment in the OasisLMF open risk modelling platform and the Open Data Standards (ODS) risk data standard, which is designed to promote model choice, interoperability and collaboration across departments and sectors.
Website: www.grma.global
About the V20
Formed in 2015, the V20 Group of Finance Ministers is a dedicated cooperation initiative of economies systematically vulnerable to climate change. Currently chaired by the Republic of Ghana, V20 Group members are also members of the Climate Vulnerable Forum (CVF). The V20 membership stands at 58 economies representing some 1.5 billion people.
For more information, please visit: www.v-20.org
PR Contacts
Nabiha Shahab
media@v-20.org
+62 813 1421 3432
About the IDF
The Insurance Development Forum (IDF) is a public-private partnership led by the insurance industry and supported by international organisations, including the United Nations and the World Bank.
It was established to facilitate and support the growth and development of insurance-related resources and capabilities to help achieve the objectives of the Sustainable Development Goals (SDGs) and related United Nations (UN) Agreements, collectively herein known as the UN Global 2030 Agenda.
The IDF aims to optimise and extend the use of insurance and its related risk management capabilities to build greater resilience and protection for people, communities, businesses, and public institutions that are vulnerable to disasters and their associated economic shocks.
For more information please visit: www.insdevforum.org
PR Contacts
Helen Wright
Lysander PR
helen@lysanderpr.com
+44 (0)7842 729 579
Roddy Langley
Lysander PR
roddy@lysanderpr.com
+44 (0)7547 901 618
About the ISF
The InsuResilience Solutions Fund (ISF) was set up by KfW German Development Bank, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) and is managed by the Frankfurt School of Finance and Management. As implementing programme of the InsuResilience Global Partnership the ISF seeks to increase the resilience and capacity of developing and emerging countries to adapt to climate change by supporting comprehensive climate risk analysis, offering studies and advice for the development of new concepts for climate risk insurance solutions and co-funding the development and market introduction of climate risk insurance products,
ISF supports the overall InsuResilience Vision 2025, aiming to lift 500 million people out of the protection gap by 2025.
For more details about ISF´s offer, please refer to www.insuresilience-solutions-fund.org.
PR Contacts
info@InsuResilience-Solutions-Fund.org
+49 (0) 69 1540 080
Date
16th November, 2022
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