Bangladesh among first countries to get financial support from Global Shield

| Updated:
November 15, 2022 08:57:53

Bangladesh has been named among the first recipients of financial support from Global Shield to address climate risks in the country, according to a joint press release by V20, The Vulnerable Twenty Group, G7 and the German Ministry for Economic Cooperation and Development. Development.

The initial contributions include around €170 million from Germany and more than €40 million from other countries. The first recipients of Global Shield packages – called Pathfinder countries – are Bangladesh, Costa Rica, Fiji, Ghana, Pakistan, the Philippines and Senegal.

Global Shield, a pre-arranged financial support initiative designed for rapid deployment in the event of a climate disaster, was officially launched on Monday by the Group of 20 Vulnerable Finance Ministers (V20) from 58 climate-vulnerable economies and the Group of Seven (G7) .

In addition, a broad coalition of countries, multilateral institutions, and private and non-state sector partners underscored its full institutional commitment to Global Shield.

Ghanaian Finance Minister, Ken Ofori-Atta, Chair of V20: “As part of our climate prosperity plan to reduce the financial protection gap by 98%, the Global Shield will play a key role in funding climate change programs. financial and social protection to protect our economy, our businesses and our communities.

Svenja Schulze, Federal Minister for Development of Germany: “Under the German Presidency, the G7 is committed to stepping up action and support on loss and damage and to working for a ‘global climate risk shield’ , answering the call of the V20”.

Henry Kokofu, Special Envoy of the Ghanaian Presidency of the Climate Vulnerable Forum (CVF): “The fate of the most vulnerable will be the fate of the world.

Haven’t we noticed how heat waves have destroyed entire cities in France, Italy and Spain? Wildfires swept through the United States and floods swept through Germany. It’s time to wake up, Kokofu added.

The Global Shield addresses current weaknesses in the financial protection structure in climate-vulnerable economies through pre-arranged finance that is disbursed quickly and reliably before or just after disasters.

It expands financial protection instruments for governments, communities, businesses and households, thereby mitigating 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 basis of the Shield: the Global Shield Solutions Platform, which is based on the InsuResilience Solutions Fund, the World Bank’s Global Shield Financing Facility and the Climate Vulnerable Forum (CVF) & V20 Joint Multi – Donor funds.

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