Quotes about Risk sharing for Loss and Damage: Scaling up protection for the Global South
Dr Ana Gonzalez Pelaez, Fellow, University of Cambridge Institute for Sustainability Leadership and lead author, said:
“We have demonstrated how public-private finance can be combined to protect billions of people, now and in the decades ahead. We are calling on the international community to make risk-sharing systems a pillar of the Loss and Damage architecture for all countries and introduce umbrella stop-loss mechanisms to protect the economies of the world’s smallest and most climate-vulnerable countries.”
“The Action Plan presented in this study is ready and can be implemented using existing institutions to provide vulnerable countries with guaranteed payouts from the risk capital markets after a disaster. These funds could be used for critical priorities such as humanitarian assistance; rebuilding schools, hospitals and vital infrastructure; sovereign debt repayments; restoration of agriculture and ecosystems.”
Dr Nina Seega, Director, Centre for Sustainable Finance, CISL, said:
“Finding a solution for financing Loss and Damage (L&D) is key to the success of climate negotiations. Accessing risk capital markets is crucial for L&D financing due to the scale, efficiency, and predictability these markets offer. This briefing offers a framework for creation of risk sharing systems to enable L&D financing and therefore a viable first step to protect vulnerable countries from climate-related disasters.”
Sid Miller, Programme Director, ClimateWise, Centre for Sustainable Finance, CISL said:
“It is an honour for ClimateWise to be utilising the knowledge and innovation of our members from across the insurance industry to support research into finding solutions that will address some of the most challenging global issues we face. Utilising this innovative risk sharing solution as a central pillar of Loss and Damage, can directly support the world’s most climate-vulnerable countries in dealing with the impact of climate change.“
Dr Mahmoud Mohieldin , UN Climate Change High-Level Champion, said:
“This innovative initiative has the potential to protect vulnerable countries from climate-related losses with pre-arranged financing at a large scale, unlocking the risk capital markets to multiply the impact of donor funds. Mobilising private finance alongside the new loss and damage fund is crucial in addressing these impacts, and more such initiatives are needed.”
Dr Youssef Nassef, Head of Adaptation, UNFCCC, said:
“Umbrella stop-loss provides a practical concept to the L&D common stance that it is an international responsibility that countries and individuals should not suffer, due to climate change, above a certain limit.”
Dr James Daniell, Natural Hazards Engineer, Risklayer GmbH; Centre for Disaster Management and Risk Reduction Technology (CEDIM) at Karlsruhe Institute of Technology and the University of Adelaide, and co-author explains:
“We have produced plausible, mid-range, estimates of climate risk for these countries using leading data sources and robust methodologies. This analysis frames Loss and Damage implementation within objective physical and economic realities, essential for effective outcomes. This pioneering research also opens up a vast global community of academic and professional expertise that stands ready to build on this work and support the urgent mission of bringing L&D protection to vulnerable countries worldwide.”
Rowan Douglas CBE, CEO Climate Risk and Resilience, Howden, and Chair, Operating Committee, Insurance Development Forum, said:
“The pure maths and dispassionate economics in this analysis are clear. Risk sharing systems empower hard won Loss and Damage funds to provide structural financial security to the widest range of vulnerable countries. We can mobilise existing expertise, institutions and partnerships to put this essential protection in place quickly. With this groundbreaking research by CISL, world leaders are guided by an Action Plan based on a bedrock of open science, rigorous analysis, shared alignment and collective purpose.”