Global Shield’s Vision for Climate Resilience

In 2024, the Global Shield against Climate Risks continued its mission of addressing financial protection gaps in climate-vulnerable countries through innovative pre-arranged finance mechanisms. This G7-V20 initiative reaffirms its commitment to building resilience against climate and disaster risks, marking significant milestones and setting ambitious goals for the future.

Key Achievements in 2024

Ghana’s First Drought Insurance Policy

Through an inclusive, country-led process coordinated by the Global Shield Secretariat, the African Risk Capacity (ARC) Ltd. issued Ghana's first drought insurance policy, financed with $1 million by KfW Development Bank on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the Global Shield Solutions Platform (GSSP), managed by Frankfurt School of Finance & Management. This policy ensures swift financial relief in the event of droughts, safeguarding agricultural livelihoods and food security. Ghana’s proactive approach, in collaboration with ARC, sets a strong example for other African nations facing similar challenges. As the continent confronts the realities of climate change, risk transfer mechanisms such as drought insurance will play a crucial role in protecting lives, securing livelihoods, and strengthening climate resilience across Africa.

[VIDEO]: How the Global Shield strengthens climate resilience in Ghana

Pakistan’s Milestone Achievement

Pakistan became the first country in Asia to access support from the Global Shield. By submitting a comprehensive request for Climate and Disaster Risk Financing and Insurance (CDRFI), Pakistan aims to close its financial protection gap with pre-arranged finance solutions. This step signifies a breakthrough in how the Global Shield collaborates with countries to tackle loss and damage effectively.

[VIDEO]: The Global Shield against Climate Risks in Pakistan

Senegal’s Request for Support

Senegal is progressing toward a formal Request for Support to the Global Shield, expected to be submitted in early 2025. Recent workshops have identified priorities such as enhanced financial support for urban flooding and MSMEs, climate risk governance, and inclusive solutions for vulnerable communities.

[VIDEO]: Global Shield Insights: Stakeholder Stories – Madeleine Diouf Sarr, Senegal

Announcements at COP29

Global Shield Ambition Unveiled

During COP29, hosted in Baku, Azerbaijan, from 11 to 22 November 2024, the Global Shield launched its "Global Shield Ambition"—a strategic blueprint aimed at enhancing financial protection for climate-vulnerable countries. The initiative focuses on inclusivity, transparency, and innovation to improve access to pre-arranged financing solutions. Today’s launch of the Ambition marks a new era for the Global Shield initiative in systematically closing the financial protection gap.

Key high-level goals include:

1. Informed Risk Prioritization: Strengthening national capacities to address climate risks.
2. Inclusive Governance: Promoting coordinated efforts across financial and development frameworks.
3. Streamlined Access to Finance: Scaling up pre-arranged finance through collaborative mechanisms.
4. Stimulating Innovation: Leveraging expertise to develop sustainable financial protection solutions.
5. Country-Led Approaches: Upholding an inclusive, bottom-up approach to foster tangible results.

Global Shield’s Expanding Reach

As of December 2024, The Global Shield is currently active in 16 countries(*) across Africa, Asia-Pacific, and Latin America. The initiative added The Gambia, Madagascar, Peru, Rwanda, and Somalia as new beneficiary countries. Consultations have commenced in Bangladesh, Malawi, and the Philippines, with progress expected in early 2025.

The V20 Group of Finance Ministers and the G7 launched the Global Shield at COP27 in Sharm El-Sheikh in 2022, aiming to boost pre-arranged financing solutions for climate-vulnerable people and communities. Two years on, with around €350 million in committed funding, the Global Shield is making strides in implementing robust protection packages through its In-Country Process (ICP) and a coordinated ecosystem of actors working in national Climate and Disaster Risk Financing & Insurance (CDRFI).

*While the Global Shield is active in a total of 16 countries, there are a total of 13 ICPs (In-Country Process). In the Pacific region, one ICP covers four countries.

Ghana and Beyond

The fruits of the inclusive, country-led, bottom-up approach are evident in Ghana, where the first drought insurance policy was purchased from the African Risk Capacity as part of its Request for Support. This achievement underscores the commitment to building resilience in agriculture and protecting livelihoods against climate risks. Several country processes are progressing well, with Pakistan officially submitting the Request for Support to the Global Shield last October in Baku. 

Gender Inclusivity: A Central Focus

The Global Shield emphasized gender-smart solutions to ensure equitable participation in resilience programs. The Centre of Excellence (CoE) on Gender-Smart Solutions led initiatives at COP29, showcasing practical approaches to integrating gender considerations into disaster risk finance.

Innovations and Partnerships

At a UNDRR-hosted event, Ghana’s Akosombo Dam was presented as a case study of resilient infrastructure benefiting local communities. Partnerships with regional risk pools and the development of inclusive insurance schemes like The Gambia’s RICAR project underscore the importance of collaboration and innovation.

Looking Ahead

As the Global Shield advances into 2025, it remains committed to a bottom-up, country-led approach to pre-arranged finance. Key priorities include completing requests from Senegal and other nations, expanding coverage, and enhancing the resilience of vulnerable populations.

Dr. Astrid Zwick, Co-Director of the Global Shield, highlighted the initiative’s vision: "The Global Shield Ambition is our guiding star, ensuring financial resilience for climate-vulnerable communities. Together, we can systematically close the financial protection gap."

With its inclusive, multi-stakeholder framework, the Global Shield is set to lead transformative change, ensuring a more resilient future for climate-vulnerable countries.