GRiF provides grants and technical expertise to test, pilot, and scale up pre-arranged financing instruments that help vulnerable countries safeguard development progress and recover more quickly from the financial impacts of climate shocks, disasters, and crises.
GRiF was launched in October 2018, as a Multi-Donor Trust Fund with over $200 million in pledges from Germany and the United Kingdom. The World Bank hosts the GRiF Secretariat, which is jointly formed by the World Bank’s Disaster Risk Financing and Insurance Program (DRFIP) and the Global Facility for Disaster Reduction and Recovery (GFDRR). The program aligns with the principles of the InsuResilience Global Partnership and it’s recently adopted Vision 2025.
GRiF finances grants that lower barriers for implementation, strengthening disaster preparedness and promoting effective risk financing by:
- Co-financing the establishment of risk financing mechanisms, e.g., financing start-up or operating costs and up-front capital contributions for risk pools or contingent grants to disaster funds linked to contingency plans. Accompanying Technical Assistance (TA) to establish ‘rules of the game’ for how funds will be disbursed.
- Co-financing for lowering the cost of risk financing mechanisms, e.g. Co-payment of insurance premium, buying down interest rates of loans, providing grants to enhance contingent financing arrangements by governments to complement risk transfer solutions.
- Co-financing for implementation of pre-arranged funding linked to national delivery mechanisms, e.g., Financing for scaling up the Safety Net and accompanying TA for adapting safety nets and establishing triggers, integrating disasters in public financial management systems, or improve claims handling systems for public insurance schemes.