Disaster Risk Finance & Governance

Flooding caused by Tropical Cyclone Ana in 2021, Labasa, Fiji (Photo Credit: FijiVillage).

The Sendai Framework for Disaster Risk  Reduction 2015-2030 and the Paris Agreement on Climate Change have recognized the need to develop and advance new and innovative financial instruments for managing and preventing losses from disaster events and climate change impacts. With increase in the frequency and severity of disaster events experienced by the FICs, it is important for FICs to strengthen financial protection against disasters and that their national planning/budgeting/oversight systems (i.e. PFM systems) are risk informed/aligned.

Outcomes

  • Strengthening risk governance and the role of central agencies through the ‘Resilient Development Financing Unit’ within the Ministry of Finance (MoF) in Tonga. This is a result of a joint initiative with the Government of Tonga, PIFS and UNDP Pacific Risk Resilience Programme. The establishment of the RDFU is the first part of a staged approach to strengthen the Ministry’s leadership capacity to support achievement of the national resilient development agenda. The Division is now playing critical role in working with the World Bank on developing Tonga’s National Disaster Risk Financing Strategy.
  • Development of the ‘5-Point’ Disaster Risk Finance and Insurance (DRFI) Strategy which aims to provide support towards PREP Countries in terms of: i) strengthening regional coordination; ii) regional exchanges; iii) private sector engagement; iv) advancing DRFI enabling environment; v) knowledge product series. As part of the knowledge product series, a report titled “An Overview of Climate and Disaster Risk Financing Options for Pacific Island Countries” was developed and was published in June 2021. The report provided information on different modalities and options that FICs may be interested to explore.
  • Supported the review of the Republic of Marshall Islands (RMI) Joint National Action Plan on Climate Change Adaptation and Disaster Risk Management 2014-2018 (JNAP). The outcome of the review has informed the strengthening of risk governance for RMI as being pursued through the PREP 2 Project. A Case study was also developed and published in June 2021 for this review. This is also part of the knowledge product series to enhance regional and national advocacy efforts for the FRDP and share lessons learnt on mainstreaming of climate and disaster, and overall resilience building agenda.
  • Securing 2021 FEMM’s endorsement to formalize advisory role of Pacific Resilience Partnership (PRP) TWG on Disaster Risk Finance (DRFWG). The DRFWG is the main vehicle used for the purpose of strengthening regional coordination for DRF in the region.

Activities:

  • Ongoing work under PRP in supporting measures to improve coordination and collaboration between stakeholders through Disaster Risk Finance Working Group. To support the work of TWG, an Operating Framework was developed and was reviewed by members of the TWG in a workshop held in November 2021. Key priorities were also identified and a workplan for 2022 is currently under development to support the implementation of activities under the DRFWG.

Partners

Supported through the World Bank PREP program, PRP DRFWG and the UNDP Governance for Resilience Programme.