Work under the Tripartite Agreement is a central tenet of the IDF’s strategy. The Sovereign and Humanitarian Solutions (SHS) Working Group leads this work (with the support of other working groups, including the RMSG and LRRP).
The Tripartite Programme was announced at the UN Secretary General’s Climate Action Summit in September 2019, and brings together three leading institutions in the Climate Risk financing space (IDF, UNDP and BMZ) with the aim of developing a series of meaningful and effective climate risk financing and insurance programmes to help the populations of countries in need of greater financial resilience against the impacts of climate risk and other natural hazards.
The goal, in line with the InsuResilience Vision 2025, is to provide technical assistance and financial resilience tools to 20 climate-vulnerable countries by 2025. As part of the tripartite the members have each committed to the following:
UNDP will drive Country Level Change:
- Implementation: Bringing UNDP’s experience to bear in mainstreaming issues of risk management in the development engagement with countries.
- Supporting regulatory and legal framework: Coordinating the development of best-practice regulation and legal frameworks to have in place to allow for better climate risk management and risk financing (significantly supported by industry).
- This will include technical assistance to countries to integrate the analytical and climate risk modelling work, jointly between the countries and with the insurance industry, into countries’ critical development processes. These include their national development plans, regional plans, Nationally Determined Contributions, National Adaptation Plans, and more.
- UNDP will also provide project management support and actively leverage its country offices as working partners with governments in support of the programme.
BMZ will contribute Financing:
- Acting as a strategic partner to steer the work of this initiative, together with the InsuResilience Global Partnership, and ensure alignment with the Partnerships’ Vision 2025, including mobilizing the financial support to underpin the work through vehicles such as the InsuResilience Solutions Fund (ISF).
- This includes co-financing, with the private sector, the technical assistance package, project management and structuring necessary for delivery of the programme by UNDP and IDF members.
The IDF’s private industry members commit to:
- Deliver Climate and other Natural Hazards Risk Modelling: Implementing a public-private partnership to enable high-quality risk insight to more developing countries. Providing an openly accessible modelling platform and ecosystem for use in countries’ adaptation and risk transfer decision making. Also, contributing technical expertise, standards and commissioning capability to the partnership’s programme to fill critical gaps in risk model coverage, quality and understanding. Through promotion of model transparency and incorporation of local research, the outcome will be more robust and sustainable risk insight in sovereign entities and their agencies.
- Developing Risk Transfer Solutions: Developing customized risk transfer options for sovereigns, sub-sovereigns and other public sector entities, based on the risk-modelling work.
- Providing Financing: In line with the financial resources mobilized by BMZ, to co-fund, in kind, the technical assistance package to countries under the programme.
- Offered Risk Capacity: And finally, as part the InsuResilience Global Partnership’s work programme, the IDF’s re/insurance industry members commit to offer up to USD 5bn of risk capacity for climate risk insurance for the selected countries by 2025.
27th August, 2020