Antananarivo, 24 September 2024 – The Republic of Madagascar, through the Emergency Management and Prevention Unit (Cellule de Prévention et d’appui à la Gestion des Urgences, CPGU) and the Ministry of Economy and Finance, launched the “Global Shield against Climate Risks” initiative today. In partnership with the Global Shield Secretariat, the initiative kicked off with a two-day workshop that marks the beginning of the In-Country Process (ICP).
Madagascar is increasingly exposed to climate risks, with rising temperatures, rainfall becoming scarcer and unpredictable, and frequent droughts. Cyclones are also increasing, while rising sea levels pose an additional threat to the island. These extreme events jeopardise the livelihoods of communities, worsen food insecurity and hinder economic development.
Thus far, Madagascar has made considerable progress in the development of financial protection mechanisms. These include, among others, the African Risk Capacity (ARC) drought and cyclone insurance, the Catastrophe Deferred Drawdown Option (Cat DDO) mechanism with the World Bank and the French Development Agency (AFD), and the Immediate Response Mechanism with the World Bank. But the gaps are still vast compared to the scale of the needs. The country also has a Disaster Risk Management Financing Strategy (Stratégie de Financement de la Gestion des Risques et des Catastrophes, SFGRC) in place, which was developed as part of the collaboration with the Africa Disaster Risk Financing (ADRiFi) Programme, financed by the African Development Bank (AfDB). The collaboration with the Global Shield provides an opportunity to capitalise and strengthen already existing mechanisms such as the ARC insurance, but also to fill the gaps in climate risk financing as advocated in the SFGRC.
The Global Shield will strengthen disaster response mechanisms, improve access to pre-arranged finance and promote innovative and sustainable solutions for the most climate-vulnerable populations.
The workshop gathered different stakeholders, including high-level political representatives, climate risk experts, development partners, the private sector and civil society organisations, with the aim of assessing existing climate risk strategies and programmes, while identifying key gaps in financial protection.
With the official launch of the Global Shield, Madagascar is demonstrating an innovative approach to manage pre-arranged finance and reaffirming its commitment to strengthening the resilience of the most climate-vulnerable communities.
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About the Emergency Management and Prevention Unit (CPGU)
An organization attached to the Prime Minister’s Office, the CPGU is the permanent strategic body for Disaster Risk Management in Madagascar. Its missions are mainly focused on the integration of Disaster Risk Reduction and the strengthening of prevention and resilience in all its dimensions. The promotion of risk finance instruments to strengthen financial resilience is one of its priority activities.
About the Ministry of Economy and Finance
The Ministry of Economy and Finance plays a crucial role in the economic and financial management of the country. Its main responsibilities are the design and management of economic policy, the management of public finances, the development of external cooperation, the development and implementation of fiscal, budgetary and customs policies, and the promotion of inclusive and sustainable development, of which the economic, social and environmental sectors are the pillars.
About the Global Shield
Launched at COP27 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 responding to losses and damages from climate change.
PRESS CONTACTS:
CPGU: faharivelo@gmail.com, cpgu.primature@gmail.com
Ministry of Economy and Finance: naivo_pro@aol.com
Global Shield Secretariat: secretariat@globalshield.org