First In-Country Consultations pave the way for Global Shield support in Ghana

07.07.2023

Blog/Article

On 5th and 6th July 2023, the Government of Ghana, Chair of the Vulnerable Twenty (V20) Group of Finance Ministers and the Climate Vulnerable Forum, kicked off the Global Shield In-Country Process in Ghana by hosting the first joint country workshop of the V20/G7 Global Shield against Climate Risks and the Global Risk Modelling Alliance (GRMA). A high-level launch of the In-Country Process was followed by a first round of technical consultations, demonstrating the Global Shield’s inclusive and evidence-informed approach to closing protection gaps in vulnerable countries.

Massimo Mina, Head of Cooperation, European Union Delegation to Ghana, Beth Cadman, Development Director, British High Commission in Ghana, Dr. Henry Kwabena Kokofu, Executive Director of the Environmental Protection Agency /CVF Special Envoy, Daniel Krull, Ambassador of Germany to Ghana Minister Ken Ofori - Atta, Minister of Finance and Economic Planning, Republic of Ghana , V20 Chair, Dr. Kwaku Afriyie, Minister for Environment, Science, Technology and Innovation , CVF Presidency, E. Hisanobu Mochizuki, Ambassador of Japan to Ghana, Sara Ahmed, Finance Advisor, V20, Lea Kulick, Senior Advisor, Global Shield Secratariat, Nick Moody, Coordinator of the IDF Risk Modelling Steering Group

Group photo of the workshop participants (©GRMA)

The Global Shield was launched at the UN Climate Conference in 2022 (COP27) with the goal to increase protection for climate vulnerable economies and communities by providing more and better pre-arranged finance against climate-related disasters. The Global Risk Modelling Alliance (GRMA) resulted from a strategic agreement between the V20 and the Insurance Development Forum (IDF). It strengthens governments’ capability in climate and disaster risk insight, and supports access to open models and data on climate and disaster risk in vulnerable countries. GRMA can play an integral part in the Global Shield as it helps countries assess gaps in financial protection of vulnerable people, and take risk-informed decisions on resilience, climate adaptation, and pre-arranged risk finance.

The In-Country Process is an inclusive, country-led process through which countries can gain access to tailored financial protection through the Global Shield. It engages relevant stakeholders, incl. vulnerable groups, to assess country-specific needs and identify how vulnerable people can be better protected against climate impacts. The designated focal point of the respective lead Ministry, in the case of Ghana the Ministry of Finance, heads the process and is responsible for convening key stakeholders and ensuring that the Process’s outputs are finalized and endorsed. The workshop in Ghana was able to successfully provide a space for an inclusive, multi-stakeholder consultation with participants from different groups, including government, development and humanitarian actors, civil society organizations and the private sector.

Workshop participants discussing in breakout groups the status quo of risk understanding in Ghana (©GRMA)

A first concrete step in the In-Country Process is to take stock of relevant programs and projects related to financial protection and pre-arranged risk finance. This helps the government understand how people are already protected (e.g. farmers against climate-related crop losses through agricultural insurance, or risk transfer at the sovereign level which provides the government with quick financing to secure food for affected people in the case of a drought). This ensures that the Global Shield integrates and builds on existing solutions and avoids duplicating efforts. Based on results of the stocktaking, a gap analysis is then conducted to assess protection gaps and identify recommendations for priority areas for support by the Global Shield. GRMA plays a key role for the gap analysis in Ghana by assessing the hazards that the country faces, and how these affect different parts of the population and different sectors of the economy.

Once priorities are defined, Ghana’s Ministry of Finance can submit a request for support to the Global Shield Financing Structure, which develops a proposal for a tailored support package. The support package will entail significant technical and financial resources for Ghana to expand financial protection, drawing on both Global Shield resources and complementary programs. To implement the support package, the Global Shield Financing Structure can provide funding to implementing organisations (incl. the private sector, civil society and development/humanitarian organisations) and to governments directly.

The kick-off workshop in Ghana marked a first important milestone in the In-Country Process, providing relevant insights on government priorities, and existing projects, programmes, and risk analyses. It paves the way for an improved understanding by the government on how vulnerable people are affected by climate and disaster risk, and for the Global Shield to enhance protection and contribute to addressing climate-related losses and damages in Ghana. More consultations will follow in the coming months and further opportunities exist to get involved and join upcoming workshops in Ghana. If your organization works within the realm of Climate and Disaster Risk Finance and Insurance and is interested to contribute to the stocktaking process in Ghana, please reach out to the Global Shield Secretariat via secretariat@globalshield.org. If you would like to stay informed about the Global Shield In-Country Process in Ghana, sign up to the Global Shield Country Community here.

Read the full event report