The climate crisis carries risks of crumbling cliffs of massive gaps in financial and social protection. The aim of the Global Shield is to make available pre-arranged resources to enable improved risk management in a climate-insecure world. In a workshop hosted by the Ministry of Finance in collaboration with the Ministry of Environment, Science, Technology, and Innovation, local and international stakeholders discussed Ghana’s strategies and priorities on climate and disaster risk finance and insurance and learned more about objectives and available support from both the Global Shield initiative and the Global Risk Modelling Alliance (GRMA).
Ghana, the Chair of the Vulnerable Twenty (V20) Group of Finance Ministers and a Global Shield pathfinder country, faces a high risk of natural hazards and disasters that have impacted people’s livelihoods. The projected annual cost of the country’s exposure to flooding is estimated to be $160 million. Agriculture and livestock – which constitute the bulk of Ghana’s economy and employs 55% of the economically active population – are the two sectors most impacted by climate-related hazards.
The launch of Ghana’s In-Country Process for the Global Shield and GRMA was graced by Ghana’s Finance Minister and V20 Chair Ken Ofori-Atta, Ghana’s Environment Minister Kwaku Afriyie, the German Ambassador to Ghana Daniel Krull, the Japanese Ambassador to Ghana Mochizuki Hisanobu, the United Kingdom’s Foreign, Commonwealth and Development Office Development Director to Ghana Beth Cadman, Head of Cooperation of the EU Delegation to Ghana Massimo Mina, and other Ghanaian and international stakeholders.
Hon. Ken Ofori-Atta, Ghana’s Minister of Finance and V20 Chair, stated: “The recently-held Paris Summit for a New Global Financing Pact drove home the need to advance the V20 Accra-Marrakech Agenda, including the Global Shield. Signing up for the Global Shield and the GRMA demonstrates our commitment to protecting our growth and minimising the loss and damages caused by climate change. Let us work together and quickly to deliver a Global Shield Package for Ghana by COP28.”
H.E. Daniel Krull, Ambassador of Germany to Ghana, highlighted: “Africa belongs to the continents that suffer most from the consequences of climate change, but contribute least to it. Whereas countries in the Sahel area suffer mostly from devastating droughts, Ghana has been facing severe flooding and coastal erosion destroying the coastlines of the country. I am happy that Ghana as the current Chair of the Vulnerable Group of Twenty (V20) advocates for sustainable solutions to the climate-crisis. As a pathfinder country of the Global Shield, Ghana will receive comprehensive support for a better understanding of climate-related risks and the implementation of instruments of financial protection. These instruments provide quick and reliable funding when climate-related disasters occur, and therefore contribute to addressing climate-related losses and damages.”
Beth Cadman, United Kingdom’s Foreign, Commonwealth and Development Office Development Director to Ghana, pointed out: “The UK warmly welcomes Ghana’s leadership within the new Global Shield against Climate Risks, and this kick off workshop with the Global Risk Modelling Alliance. Disaster risk finance (DRF) ensures that money is available to respond rapidly after shocks such as the recent flooding in Accra or drought in the Northern regions, helping to pre-empt damage, save lives and livelihoods and accelerate recovery. The Global Shield against Climate Risks – agreed by the V20 and G7 and launched at COP 27 last year – is a global initiative that provides a framework to scale disaster risk finance in an effective, collaborative and country-led way. It is wonderful that Ghana is a pathfinder country in this critical initiative. It will deliver value, resilience and impact to Ghana, and the insights from the work here will improve the way DRF expands across the world.”
After the initial workshop, further consultations and a gap analysis will follow to define priorities for the Global Shield and GRMA Request of Support. Based on the outcome of the consultations, Ghana’s Ministry of Finance will file the Request to the Global Shield Financing Structure which will offer a tailored country support package to Ghana.
Launched at COP 27 by the Vulnerable Twenty (V20) Group of Finance Ministers and the Group of Seven (G7), the Global Shield against Climate Risks aims to increase protection for climate vulnerable economies and communities by providing and facilitating substantially more and better pre-arranged and trigger-based finance against disasters and climate risks. Greater financial protection and faster and more reliable disaster preparedness and response will contribute to effectively addressing losses and damages from climate change. https://www.globalshield.org/activities/in-country-process/
The Global Risk Modelling Alliance (GRMA) plays an integral part in the Global Shield In-Country Process as it facilitates access to risk management tools, technical assistance and funding for open models and data, working closely with local officials and experts in the respective ministries and agencies. Resulting from a strategic agreement between the V20 and the Insurance Development Forum (IDF), the GRMA aims to strengthen sovereigns’ autonomous capability in climate and disaster risk insight, support strategic decision-making and help unlock risk finance for public good. https://grma.global/
Ghana is the current Chair of the Climate Vulnerable Forum (CVF) and the Vulnerable Twenty (V20) Group of Finance Ministers. The V20 Group is a dedicated cooperation initiative of economies systematically vulnerable to climate change. The V20 membership stands at 58 countries representing some 1.5 billion people from Afghanistan, Bangladesh, Barbados, Benin, Bhutan, Burkina Faso, Cambodia, Chad, Colombia, Comoros, Costa Rica, Côte d’Ivoire, the Democratic Republic of the Congo, Dominican Republic, Eswatini, Ethiopia, Fiji, The Gambia, Ghana, Grenada, Guatemala, Guinea, Guyana, Haiti, Honduras, Kenya, Kiribati, Kyrgyzstan, Lebanon, Liberia, Madagascar, Malawi, Maldives, Marshall Islands, Mongolia, Morocco, Nepal, Nicaragua, Niger, Palau, Palestine**, Papua New Guinea, Philippines, Rwanda, Saint Lucia, Samoa, Senegal, South Sudan, Sri Lanka, Sudan, Tanzania, Timor-Leste, Tunisia, Tuvalu, Uganda, Vanuatu, Viet Nam, and Yemen. https://www.v-20.org/
**As a UN non-member observer state