G7 Nations Launched Climate ‘Shield’ Fund

Global Shield Fund coordinated by G7’s president Germany and the V20 group of climate-vulnerable countries, it aims to rapidly provide pre-arranged insurance and disaster protection funding after events such as floods, droughts and hurricanes hit.

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More About The Fund:

A G7-led plan dubbed “Global Shield” to provide funding to countries suffering climate disasters was launched at the U.N. COP27 summit, although some questioned the effectiveness of the planned scheme.

The Scale Of The Funding:

Backed by 170 million euros ($175.17 million) in funding from Germany and 40 million euros from other donors including Denmark and Ireland, the Global Shield will in the next few months develop support to be deployed in countries including Pakistan, Ghana, Fiji and Senegal when events occur.

Alarming Situation: Not Fully Covered:

Some countries and campaigners were cautious, however, concerned it risked damaging efforts to secure a substantive deal on financial help for so-called “loss and damage” – the U.N. jargon for irreparable damage wrought by global warming.

Some research suggests that by 2030, vulnerable countries could face $580 billion per year in climate-linked “loss and damage”.

What Has Been Said:

German development minister Svenja Schulze said the Global Shield aimed to complement, not replace, progress on loss and damage.

“It is not a kind of tactic to avoid formal negotiation on loss and damage funding arrangements here,” Schulze said. “Global Shield isn’t the one and only solution for loss and damage. Certainly not. We need a broad range of solutions.”

Ghana’s finance minister Ken Ofori-Atta, who chairs the V20 group of vulnerable countries, called the creation of the Global Shield “long overdue”.

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Piyush Shukla

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