Disasters threaten development and poverty reduction. Global economic losses from disasters are on average more than US$300 billion a year. Risk Finance contributes to sustainable and resilient development, enabling central planning and finance agencies to improve the effectiveness and reduce the cost of disaster response and recovery by planning ahead where funds come from and how they will be implemented. The workshop underscored the need for close collaboration between central finance and national disaster management agencies to ensure adequate, effective, and inclusive preparation for, response to, and recovery from climate-related disasters.

The HP4, HP5, and Adaptation workstreams organized a workshop focused on disaster risk financing on September 20, 2023. The workshop provided Coalition members with an overview of disaster risk financing by experts from the World Bank, presented the World Bank’s Disaster Resilient and Responsive Public Financial Management Assessment Tool, summarized the European Commission’s findings on disaster risk financing in EU member states, and provided the United Kingdom, Mexico, and the Philippines with an opportunity highlight the progress they’ve made on this important topic.