Climate and Disaster Risk Financing and Insurance: 25 key terms ... - ReliefWeb
Climate and Disaster Risk Financing and Insurance: 25 key terms you need to know - World | ReliefWeb
In the face of mounting challenges posed by climate and non-climate hazards, Climate and Disaster Risk Finance and Insurance (CDRFI) has emerged as a vital component of Comprehensive Disaster Risk Management. By offering a range of financial tools and strategies, CDRFI plays a crucial role in strengthening the resilience of individuals and communities.
The interest in CDRFI within the realm of climate change adaptation continues to grow, including for innovative financing arrangements to address loss and damage associated with climate change. It is helpful to have a clear understanding of the terminology used by industry experts and practitioners, including stakeholders from the public and the private sector. This understanding enables everyone to be on the same page and to make informed decisions.
To facilitate this understanding, the Solutions and Practice Partnerships team at MCII has curated the following list of concise and easily comprehensible definitions for key concepts commonly used in the CDRFI community. Please feel free to access and download the publication here.
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”