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.
- 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 soon to be published in mid-2021. The report will provide 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 will be published in mid-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.
- Ongoing work under PRP in supporting measures to improve coordination and collaboration between stakeholders through the ‘Risk Financing Working Group’ (RFWG) which was established in 2019. The RFWG is the main vehicle used for the purpose of strengthening regional coordination for disaster risk finance.
Supported through the World Bank PREP program, PRP RFWG and the UNDP Governance for Resilience Programme.