Adaption and risk sharing
The risk analysis provides information to advise short and long-term decisions on adaptation and resilience priorities to protect social, economic, cultural and environmental well-being.
Developed as a pivotal pre-COP28 initiative, this collaborative study addresses the severe climate vulnerability of Small Island Developing States (SIDS), such as Fiji and the Maldives. The project outlines a groundbreaking financial strategy designed to mitigate the escalating economic impacts of climate change on vulnerable nations through innovative risk-sharing mechanisms and public-private partnerships.
Project Highlights
- Umbrella Stop-Loss Mechanism: Proposed an innovative financial structure aimed at capping a vulnerable nation's annual economic losses from climate-related events at 10% of its GDP.
- Capital Market Mobilization: Demonstrated how a strategic annual injection of USD 300 million from Loss and Damage (L&D) donors could effectively unlock and mobilize up to USD 25 billion from global risk capital markets.
- Cross-Sector Collaboration: Co-developed by a consortium of academic institutions and industry leaders to create a comprehensive, actionable plan for global climate risk mitigation.
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