DRRRF Overview
Introduction
Climate change is placing an increasing number of people and assets at risk, affecting health and quality of life, agriculture, and making development less sustainable. While both rich and poor are affected by climate-related disasters, the impacts are disproportionately large on the less well-off and the poor because they own assets that are not able to withstand shocks or are located in highly-exposed areas such as flood plains and coastal zones. This rise in poverty could exacerbate social instability and fragility with negative spillover effects.
Climate change threatens the objective of sustainably eradicating poverty. People are exposed and vulnerable to all types of climate-related shocks— natural disasters that destroy assets and livelihoods; waterborne diseases and pests that become more prevalent during heat waves, floods, or droughts; crop failure from reduced rainfall; and spikes in food prices that follow extreme weather events. Climate-related shocks also affect those who are not poor but remain vulnerable and can drag them into poverty—for example, when a flood destroys an enterprise, a drought decimates a herd, or contaminated water makes a child sick. Such events can erase decades of hard work and asset accumulation and leave people with irreversible health consequences. Changes in climate conditions caused by increasing concentrations of greenhouse gases (GHGs) in the atmosphere can worsen these shocks and slow down poverty reduction.
Climate Change will get worse over time. The number of climatological, hydrological, meteorological, and geophysical events are already observed to be increasing worldwide (MunichRE). The Intergovernmental Panel on Climate Change’s IPCC Fifth Assessment Report finds that unabated climate change will lead to intense and more frequent heat waves, extreme precipitation, coastal flooding, and other extreme events. While repercussions from these events will be felt all across the globe, the poorest regions of the world will bear the brunt of the impacts.
GLOBAL BANK GROUP TO ADDRESS CLIMATE CHANGE, DISASTER REDUCTION, AND RECOVERY
The Global Bank Disaster Reduction and Reconstruction Fund – An Umbrella Trust Fund comes at a time when the world’s ambition to deal with the growing threat of climate change is at its highest. The vulnerability to all countries to climate change is raptly rising, and the need for resources has never been acuter.
The Global Bank Disaster Risk Reduction and Reconstruction Fund – An Umbrella Trust Fund (the “Trust Fund” or “DRRRF”) is the latest initiative by the Global Bank Group (Bank Group) aimed at addressing Long-term Climate Finance. The DRRRF, established in 2017, as a multi-donor partnership and grant-making financing mechanism. Its purpose is mainstreaming climate change to help achieve the Sendai Framework targets by 2030 - a decade-long plan to help make the world safer from disasters caused by natural hazards — and to support the implementation of the Global Climate Agreement in Paris, and prevent disasters undermining progress on the Sustainable Development Goals. The Sendai Framework for Disaster Risk Reduction 2015-2030 (SFDRR), was adopted at the Third UN World Conference on Disaster Risk Reduction (WCDRR), held on March 14-18, 2015 in Sendai, Japan, and will guide action on disaster risk reduction worldwide for the next 15 years.
G7/G20 Reports on Climate Change
The Global Bank Disaster Risk Reduction and Reconstruction Fund – An Umbrella Trust Fund was launched in the context of the German G7 Presidency 2015, and G20 Hamburg summit 2017 and follows on a background report on Long-term Climate Finance prepared for the German G7 Presidency 2015 by CICERO and Climate Policy Initiative. It aims to inform discussions on how to scale up climate finance to meet low-carbon, climate-resilient, investment needs. And discusses current investment levels, future needs, potential solutions that support developed countries’ commitment to mobilize USD 100 billion per year for climate action in developing countries by 2020, and other reports requested by the G20 Finance Ministers on Mobilizing Climate Finance completed by World Bank, International Monetary Fund, OECD , and the various Regional Development Banks (MDBs).
Interesting facts about the G7:
THE GLOBAL BANK DISASTER RISK REDUCTION AND RECONSTRUCTION FUND – AN UMBRELLA TRUST FUND
The Global Bank Disaster Risk Reduction and Reconstruction Fund – An Umbrella Trust Fund comes at a time when the world’s ambition to deal with the growing threat of climate change is at its highest. The vulnerability to all countries to climate change is raptly rising, and the need for resources has never been acuter. The Global Bank Disaster Risk Reduction and Reconstruction Fund was established in 2017, as a multi-donor partnership and grant-making financing mechanism. Its purpose is mainstreaming climate change to help achieve the Sendai Framework targets by 2030 - a decade-long plan to help make the world safer from disasters caused by natural hazards — and to support the implementation of the Global Climate Agreement in Paris, and prevent disasters undermining progress on the Sustainable Development Goals. The Sendai Framework for Disaster Risk Reduction 2015-2030 (SFDRR), was adopted at the Third UN World Conference on Disaster Risk Reduction (WCDRR), held on March 14-18, 2015 in Sendai, Japan, and will guide action on disaster risk reduction worldwide for the next 15 years.
The Global Bank Disaster Risk Reduction and Reconstruction Fund – An Umbrella Trust Fund goal is to develop practical, nationally consistent, legally justifiable, and cost-effective measures, both structural and nonstructural, to reduce our vulnerability while increasing our resilience to climate change. The DRRRF will engage in a collaborative approach, partnering with other government agencies. This collaboration takes advantage of our different perspectives and expertise so that our progress reflects the best available and actionable science. The DRRRF is developing and implementing plans, policies, and infrastructure adaptation in parallel, rather than sequentially, so that adaptation begins soonest for projects that are most vulnerable. The Global Bank Disaster Risk Reduction and Reconstruction Fund will refine our adaptation based on any newly acquired knowledge.
The Global Bank Disaster Risk Reduction and Reconstruction Fund – An Umbrella Trust Fund will facilitate an effective response to countries’ demands, by cooperating with global and regional, national institutions and fostering the mainstreaming of climate dimensions into sustainable development. The DRRRF activities under the Climate Change Action Plan are organized along eight top-level priorities:
i. Support Transformational Policies and Institutions;
ii. Leverage Resources;
iii. Scale up Climate Action;
iv. Align Internal Processes and Work with Others;
v. Disaster Risk Financing and Insurance (DRFI);
vi. Small Island States
vii. Urban Resilience and,
Enhancing disaster preparedness for effective response, and to “Build Back Better” in recovery, rehabilitation, and reconstruction.
The climate agenda in the Global Bank Disaster Risk Reduction and Reconstruction Fund – An Umbrella Trust Fund will be closely linked to the Bank Group’s Climate Change Action Plan and its goals. The Action Plan focuses on building resilience and low emission development, including scaling up efforts in areas of climate-smart cities; climate-smart land use (agriculture and water management); and energy efficiency and access. The DRRRF will support Global Bank Group commitments to scale-up innovative and transformative activities towards climate resilient development. It will continue to mainstream climate and disaster risk screening and resilience activities, and when requested by countries, support low-emission development. It will also provide timely assistance to countries to get their policy framework right which will support them in meeting their ambitions for low-emission and climate-resilient development articulated in their Nationally Determined Contributions (NDCs).
For the most frequently asked questions (FAQs) related to INDCs, visit our INDC FAQs page.
Effective Post-Disaster Reconstruction and Recovery
The Global Bank Disaster Risk Reduction and Reconstruction Fund – An Umbrella Trust Fund is mobilising large-scale financing for effective post-disaster reconstruction and recovery efforts including leveraging public and private climate finance in an effective, catalytic manner to an increased adaptive capacity and a low greenhouse gas emission and climate-resilient development, aiding in the achievement of related Sustainable Development Goals.
The Global Bank Disaster Risk Reduction and Reconstruction Fund – An Umbrella Trust Fund provides a time-tested and a very successful recovery and reconstruction model for post-disaster reconstruction based on partnerships between government, donors, communities and other stakeholders. The partnerships formed by the DRRRF are structured with the objective to play a key role in the strong performance of the post-disaster reconstruction and recovery programmes and to support robust results achievement. Pooling resources through the Global Bank Disaster Risk Reduction and Reconstruction Fund will result in the harmonization of donor efforts and provide an important platform for policy dialogue for many stakeholders.
The Global Bank Disaster Risk Reduction and Reconstruction Fund – An Umbrella Trust Fund was designed to fill the gaps in reconstruction in line with government priorities and to bring together key government players, donors, and members of civil society and communities.
| 1 | The G7 is an organization of world leaders, finance ministers, and heads of state from seven of the largest economies in the world - Canada, France, Germany, Italy, Japan, the U.K., and the U.S. - as well as the European Council, EU Commission, and International Monetary Fund. |
| 2 | The G20 (or G-20 or Group of Twenty) is an international forum for the governments and central bank governors from Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom, United States, and the European Union. Founded in 1999, the G20 aims to discuss policy pertaining to the promotion of international financial stability. It seeks to address issues that go beyond the responsibilities of any one organization. The G20 heads of government or heads of state have periodically conferred at summits since their initial meeting in 2008, and the group also hosts separate meetings of finance ministers and foreign ministers due to the expansion of its agenda in recent years. |
| 3 | The G-20 Finance Ministers and Central Bank Governors is a group of finance ministers and central bank governors from 20 major economies: 19 countries plus the European Union, which is represented by the President of the European Council and by the European Central Bank. |
| 4 | The Organisation for Economic Co-operation and Development is an intergovernmental economic organisation with 35 member countries, founded in 1960 to stimulate economic progress and world trade. |
| 5 | The Multilateral Development Banks (MDBs) are institutions that provide financial support and professional advice for economic and social development activities in developing countries. The MDBs provide financial and technical support to developing countries to help them strengthen economic management and reduce poverty. Together, the MDBs provide support to the world's poorest in every corner of the globe, strengthening institutions, rebuilding states, addressing the effects of climate change, and fostering economic growth and entrepreneurship. |
| 6 | Intended Nationally Determined Contributions (INDCs) is a term used under the United Nations Framework Convention on Climate Change (UNFCCC) for reductions in greenhouse gas emissions that all countries that signed the UNFCCC were asked to publish in the lead up to the 2015 United Nations Climate Change Conference held in Paris, France in December 2015. These intended contributions were determined without prejudice to the legal nature of the contributions. The term was intended as a compromise between "quantified emissions limitation and reduction objective" (QUELROs) and "nationally appropriate mitigation actions" (NAMAs) that the Kyoto Protocol used to describe the different legal obligations of developed and developing countries. Under the Paris Agreement, adopted in December 2015, the INDC will become the first Nationally Determined Contribution when a country ratifies the agreement, unless they decide to submit a new NDC at the same time. Once the Paris Agreement is ratified, the NDC will become the first greenhouse gas targets under the UNFCCC that applied equally to both developed and developing countries. |