World Bank to host Global Shield Financing Facility for climate risks

09 Nov '22

1 min read

Pic: Shutterstock

The World Bank will host a new facility to help nations experiencing heavy economic loss due to disasters induced by climate change, according to its president David Malpass, who recently announced the new instrument, the Global Shield Financing Facility, at a meeting with German Chancellor Olaf Scholz at the UN Climate Change Conference in Sharm el-Sheikh.

Germany will offer €170 million for the Global Shield programme, Scholz, who has spearheaded the effort among G7 members to start an initiative to offer vulnerable countries access to disaster risk finance and insurance, announced at the conference.

“We will also support those countries hit hardest by climate change in a targeted way in dealing with loss and damage,” Scholz was quoted as saying at the COP27 summit by global newswires.

Belgium committed €2.5 million to the facility for Mozambique from 2023 to 2028. The Belgian funding would focus on preventing and limiting loss and damage, for example by mapping areas vulnerable to storm surges, and rolling out early warning systems.

Cyclone Idai caused about $1.4 billion in total damage and $1.39 billion in losses in Mozambique in 2019, according to an assessment by the International Labour Organisation.

Fibre2Fashion News Desk (DS)

More World Bank News... More Textiles News - Egypt...