Joint press release issued by the Ministry for Europe and Foreign Affairs and the Ministry of the Economy, Finance and Inudstrial and Digital Sovereignty
The Global Shield Against Climate Risks, a joint initiative of the G7 and the V20 Group of 20 vulnerable countries, was launched on 14 November at the COP 27 in Sharm el-Sheikh.
This new initiative aims to respond to the call from the most climate vulnerable countries to improve the response to climate change-related loss and damage. In 2023, France will contribute €20 million in subsidies to the Global Shield Against Climate Risks. Germany, Canada, Denmark, the United States, France and Ireland will contribute a combined total of €210 million to the Global Shield. Other countries’ contribution announcements are forthcoming.
The Global Shield Against Climate Risks will make it possible to improve the financial protection against climate-related disaster risks for people living in vulnerable countries. The initiative will support the design and deployment of social protection and insurance solutions for local communities, businesses and households in order to provide fast and reliable funding when disasters occur, along the lines of the insurance schemes that exist in certain developed countries. This will enable the Global Shield to strengthen community resilience and support economic and social development.
Bangladesh, Costa Rica, Fiji, Ghana, Pakistan, the Philippines and Senegal will be among the first countries to benefit from the Global Shield.
The Global Shield is structured around two pillars: a coordination platform tasked with designing insurance solution packages together with the beneficiary countries and a financing structure that will support the deployment of these solutions. France’s contribution will go to the Global Shield’s financial vehicle.
France’s contribution to the Global Shield constitutes an integral part of efforts spanning the entire range of activities that seek to avoid, reduce and remedy climate change-related loss and damage. These activities range from climate change mitigation solutions to possibilities for adaptation, disaster risk reduction, humanitarian assistance and sustainable reconstruction. France is one of the primary contributors to the financing of adaptation in developing countries, with 2021 contributions totalling €2.2 billion. France supports the UN Secretary-General’s call for early warning systems to become more widespread. To this end, France has announced that beginning in 2023, we will be doubling our contribution to the Climate Risk and Early Warning Systems Initiative (CREWS), bringing the total to €8 million per year.
France is one of the primary contributors to international climate finance. In 2021, France contributed €6.1 billion to international climate finance in developing countries, thus exceeding its goal. As we enter the second week of the COP 27 in Sharm el-Sheikh, France calls on the developed countries that have not done so already to set ambitious climate finance goals for themselves and to implement them quickly so that together, we can reach the climate finance goal of $100 billion per year.