Global Shield Against Climate Risks

Launched at COP27 by the V20 Finance Ministers (V20) and the Group of Seven (G7), the Global Shield against Climate Risks aims to increase protection for vulnerable people and countries and contribute to effectively addressing losses and damages exacerbated by climate change. The Global Shield promotes an inclusive, gender-sensitive, and demand-driven process, which is led by the vulnerable countries’ governments. To achieve its vision, the Global Shield will use evidence-based, systematic, and inclusive analyses of countries’ protection gaps, and apply these analyses to design, fund, and facilitate interventions to address these gaps. The objective of the Global Shield is to increase financial protection for vulnerable people by providing more and better pre-arranged risk finance against climate-related disasters. Climate and Disaster Risk Finance and Insurance provides quick and reliable funding when climate impacts materialize, which in turn helps governments, people, and businesses to act earlier and respond more effectively. The Global Shield will support countries in acquiring needs-based financial protection in a systematic, coherent, and sustained way, leveraging a broad and diverse landscape of institutions. Countries are supported in identifying and implementing the most cost-effective solutions to cover their protection gaps. Protection gaps can be defined as risks that cannot be mitigated through risk prevention or risk reduction, and for which no financial protection is yet in place.