COP27: Bangladesh among first countries to get global shield financial support
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Bangladesh has been named among the first recipients of Global Shield’s financial support to address the climate risks in the country, according to a joint press release of V20, The Vulnerable Twenty Group, G7, and the German Ministry for Economic Cooperation and Development.
The Initial contributions include around 170 million euros from Germany and more than 40 million euros from other countries. The first recipients of Global Shield packages – called Pathfinder countries – include Bangladesh, Costa Rica, Fiji, Ghana, Pakistan, the Philippines and Senegal.
Global Shield, an initiative for pre-arranged financial support designed to be quickly deployed in times of climate disasters, was officially launched Monday by the Vulnerable 20 Group of Finance Ministers (V20) of 58 climate vulnerable economies and the Group of Seven (G7).
In addition, a broad coalition of countries, multilateral institutions, and non-state and private sector partners has underlined their full institutional commitment to Global Shield.
Ghana Finance Minister Ken Ofori-Atta, V20 Chair: “As part of our Climate Prosperity Plan to reduce the 98 per cent financial protection sinkhole, the Global Shield will play a key role in resourcing financial and social protection packages to protect our economy, our enterprises and our communities.”
Svenja Schulze, Federal Development minister of Germany: “Under the German Presidency, the G7 have committed to scale-up action and support on loss and damage and to work towards a 'Global Shield against Climate Risks', responding to the V20’s call.”
Henry Kokofu, special envoy of the Climate Vulnerable Forum (CVF) Ghana Presidency: “The fate of the most vulnerable will be the fate of the world.
Have we not noticed the way heat waves have ransacked entire cities in France, Italy, and Spain? Forest fires have invaded the US and flooding has invaded Germany. It is time to wake up, Kokofu added.
The Global Shield addresses current weaknesses in the financial protection structure in climate vulnerable economies via pre-arranged finance which disburses quickly and reliably before or just after disasters happen.
It expands instruments of financial protection for governments, communities, businesses, and households, thus, lessening the impact of disasters, making vulnerable economies resilient, safeguarding sustainable development, and protecting lives and livelihoods.
A financing structure with three complementary funds forms the foundation of the Shield: the Global Shield Solutions Platform, which builds on InsuResilience Solutions Fund, the Global Shield Financing Facility at the World Bank, and the Climate Vulnerable Forum (CVF) & V20 Joint Multi-Donor Fund.