Pakistan, Ghana and Bangladesh will be among the first recipients of funding from a G7 ‘Global Shield’ initiative to provide funding to countries suffering climate disasters, the programme announced at the COP27 summit in Egypt.
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What Is Global Shield Funding:
The Global Shield(GS), coordinated by G7 president Germany, aims to provide rapid access for climate-vulnerable countries to insurance and disaster protection funding after floods or drought. It is being developed in collaboration with the ‘V20’ group of 58 climate vulnerable economies. Germany has contributed $175.17 million in funding to Global Shield while other countries including Denmark and Ireland have contributed a little over $41 million.
Objective Of The Fund:
- The GS will close urgent protection gaps in countries by designing, funding, and facilitating interventions.
- The GS aims to rapidly provide pre-arranged insurance and disaster protection funding after events such as floods, droughts and hurricanes hit.
- The Global Shield aims to complement, not replace, the progress on ‘loss and damage’.
Who Are The Beneficiaries:
Bangladesh, Costa Rica, Fiji, Ghana, Pakistan, the Philippines and Senegal as some of the initial recipients of Global Shield packages. Those packages would be developed in the coming months.
What Has Been Said:
“It is not a kind of tactic to avoid formal negotiation on loss and damage funding arrangements here. Global Shield isn’t the one and only solution for loss and damage, Certainly not. We need a broad range of solutions,” said Schulze. However, some vulnerable countries are not yet persuaded as there is reportedly not a lot of clarity on the “insurance elements” of the deal.
“Using insurance is a method in which the victim pays, just in installments in the beginning,” said a special envoy on climate finance Avinash Persaud to the Prime Minister of Barbados, Mia Mottley said. He also said that the loss and damage finance should be grant-based.