1. WHAT IS THE GLOBAL RISK FINANCING FACILITY (GRiF)?
Is the new incubator of financial solutions, to help countries to mitigate the impact of climate shocks, disasters and crisis.
Established as a Multi-Donor Trust Fund (MDTF) by InsuResilience Climate Risk Financing, supported by Germany and the U.K, the facility provides grants to test, pilot, and scale up financing instruments that help developing countries better manage financial impacts from shocks and crises.
It is not just an additional pot of money to support response to shocks, but an investing program piloting new and scaling up existing financial instruments that catalyze a change in the way developing countries plan for and finance emergency response to address the fiscal and poverty impact.
2. WHY GRIF, WHY NOW?
In the last 15 years, more than a billion people globally have lifted themselves out of poverty. Paradoxically, rapidly growing populations and economic growth are putting more people and assets in harm’s way.
Climate change is further increasing the frequency and severity of extreme events. The poorest households bear the brunt of these impacts, with woman and girls especially vulnerable.
Early action can reduce the economic impacts of shocks. Now, more than ever, a rapid response to climate shocks, disasters and crisis is key to saving lives, preserving livelihoods and helping communities build up financial resilience.
3. HOW DOES GRIF SUPPORT COUNTRIES?
- - Financing for scoping and preparation of financial risk management solutions;
- - Co-financing for multilateral, bilateral or country financing to implement financial risk management solutions;
- - Technical assistance and global public goods.
4. WHAT COUNTRIES CAN RECEIVE GRIF SUPPORT?
As a global initiative, GRiF focuses on the most vulnerable countries. However, GRiF also supports to all countries for innovation that helps to test and demonstrate new approaches to disaster risk management.
During the first year of implementation GRiF focused on Asia and Africa, but GRiF donors are expanding strategic priorities for resource allocation.
5. HOW DOES GRIF STRENGTHEN FINANCIAL RESILIENCE?
GRIF works with governments to implement risk financing instruments and strengthen country systems for the quick disbursement of funds. GRiF is an enabler of reliable response and recovery, through establishing or scaling up pre-arranged risk financing instruments.
6. GRIF PROVIDES INSURANCE?
No. GRiF itself is not a direct provider of insurance or other financial instruments; nor is it a new global risk pool. Rather, it provides financial and technical support to bring down the technical and financial barriers for countries to access and use such instruments.
7. WHO ARE GRIF’S BENEFICIARIES?
GRiF works through country systems, which means grants are embedded as part of country projects, reaching ultimate beneficiaries on the ground – including farmers, small and medium enterprises, and others who are often disproportionately impacted from disasters – through country-owned delivery systems. GRiF meets the pro-poor principles developed by the InsuResilience Global Partnership, and particularly account for differences in gender vulnerability, while planning and implementing financial instruments.
8. HOW IS GRIF COORDINATED WITH EXISTING REGIONAL RISK POOLS?
Driven by country demand, GRiF could support governments to access existing risk pools, enhance existing risk pools, or in rare circumstances set up new risk pools. GRiF co-finance premiums for products from risk pools or serve as a vehicle to finance start-up and operating costs of new risk pools.