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“GRiF is helping to boost resilience at all levels of the economy: at the macro-level to build better buffers; at the mid-level to get firms back into action quickly; and at the micro-level to protect households, assets, and livelihoods.” YEARSUPPORTING EARLY ACTIONONE TO CLIMATE David Malpass SHOCKS, DISASTERS & CRISES JANUARY TO Bank Group President DECEMBER,2019

Benedikt Signer Sumati Rajput Finance, Competitiveness & Innovation Global Practice Global Facility for Disaster Reduction and Recovery [email protected] [email protected]

ALLIANCE PARTNER OF SUPPORTED BY IMPLEMENED AND MANAGED BY ALLIANCE PARTNER OF SUPPORTED BY IMPLEMENED AND MANAGED BY v

Global Analytics Program The GRiF Portfolio $5.5 million grant awarded to support the development of Between January and December 2019, GRiF awarded over $50 million of the ~$200 million public goods on crisis risk finance. Activities financed through pledged by Germany and the to pre-arrange financial solutions and improve the this grant will leverage satellite data, innovative technology, and quality of data and analytics in vulnerable countries. analytics to create an enabling environment for improved risk management and risk financing. 5 projects were approved for $52 million. These include 4 country grants to , $200,000 scoping grant awarded for the feasibility assessment Sierra Leone, , and , and one global public goods grant for crisis analytics. $2.5 million grant, co- and design of a Capacity Strengthening Program to provide Exploration of new projects is ongoing in 13 countries, 11 of which have scoping grants worth financing a$30 million flexible, customized, and real-time training to government officials $2 million to explore feasibility of larger programs. operation to on financial planning for emergencies. enable the country’s existing The map shows the geographical distribution the GRiF portfolio as of the end of 2019. These grants join the analytical awards granted in 2018 during social safety net to respond to the design pilot phase of GRiF, which set up two Challenge Funds Jamaica shocks. $4 million IDA funds and supported analytical work in Armenia as well as work with the were set aside in the project Famine Early Action Mechanism (FAM) and the Start Network. $16.4 million grant to finance premium to flow through this new payments for a risk transfer instrument shock-responsive system, that will expand the country’s suite of which could be rapidly Southeast Asia Disaster Risk financial preparedness instruments to distributed to respond to Insurance Facility (SEADRIF) protect its budget from climate shocks. shocks using the new shock- Lao PDR responsive mechanism.

Senegal Myanmar

Central America Regional Mechanism

Democratic of the Congo Colombia Malawi $21 million grant, part of a $120 million World Bank Project grants approved operation to enable the country’s as of the end of 2019 Social Program to Mozambique Countries in scoping as scale up during emergencies and $8 million grant, part of a $90 million World Bank working through the Pacific Catastrophe Risk of end of 2019 to fund the design of a parametric operation to support the government’s disaster Assessment and Financing insurance instrument that will risk management program, with a strong focus on Initiative (PCRAFI) provide protection against more financial planning. The funds will enable: (i) the design severe events. of a sovereign risk insurance mechanism against severe events and (ii) co-payment of premiums for this instrument alongside the government. v About GRiF GRiF provides grants and technical expertise to test, pilot, and scale up pre-arranged financing instruments that help countries safeguard development progress and recover more quickly from the impact of climate shocks, disasters, and crises.

GRiF is a Trust Fund with ~$200 million in pledges and contributions from Germany and the United Kingdom. The World Bank hosts the GRiF Mozambique Malawi Sierra Leone Jamaica Secretariat, which is jointly formed by the World Bank’s Disaster Risk Implementing sovereign risk insurance Designing a shock-responsive system Responding to Disaster and Health Shocks Supporting a Comprehensive Financial Resilience Strategy Finance and Insurance Program (DRFIP) and the Global Facility for Disaster Each year, Mozambique loses more than Malawi faces high risk of droughts and Sierra Leone faces large exposure to floods, landslides, Jamaica faces a high risk of hurricanes, 1% of its GDP to weather-related hazards, floods. Around 83% of Malawians live in rural mudslides, and pandemics. Over the past 15 years, the tropical storms, earthquakes, Reduction and Recovery (GFDRR). The program contributes to the Vision from cyclones and floods to droughts areas, 80% are employed in the agricultural country has experienced five major floods, which have droughts, floods, and landslides and earthquakes. Most recently, in March sector, and 70% already live below the affected more than 500,000 people, most of them in which can have severe macro-economic 2025 of the InsuResilience Global Partnership. and April 2019, Cyclones Idai and Kenneth international poverty line of US$1.90 per day. poverty. impacts. After Hurricanes Dean and affected 2 million people and led to losses of Due to its economic and social conditions, Gustav in 2007 and 2008, Jamaica’s The government of Sierra Leone is making its national $3 billion. the country has limited capacity and inflation rate spiked to over 20 percent. How does GRiF support countries? safety net shock-responsive to more effectively manage resources to ensure adequate and timely Financial resources to address these calamities the financial impacts of natural disasters and health A GRiF grant of $16.4 million responses to climate-related disasters and are usually arranged only after the occurrence emergencies. will contribute to expanding the other shocks. of these events, with funds arriving a little government’s sovereign risk insurance • Financing for feasibility and preparation of financial risk management The $2.5 million GRiF grant, alongside the IDA operation, too late to meet urgent post-event needs. A $120 million IDA operation seeks to program by financing premiums for a will support development of the scalability mechanism, solutions support Malawi’s government to improve and risk transfer instrument. A $90 million IDA operation is supporting including the design of triggers that signal an , the extend its Social Cash Transfer Program to the government’s disaster risk management institutional and operational arrangements for the scale-up, The project will work through strengthen the country’s financial resilience to program to develop and implement a and the build-out of the appropriate payment and service already established mechanisms • Co-financing World Bank projects or government funds to implement weather-related shocks. comprehensive risk financing strategy delivery systems. The grant will also support capacity- and institutions like the Programme financial risk management solutions including a national disaster fund. As part of this operation, a GRiF grant of building of decision-makers for better financial planning of Advancement through Health $21 million will support the design of a and response efforts in the face of emergencies. and Education (PATH) and Jamaica As part of this operation, a GRiF grant of shock-responsive component for this safety Household Damage, Needs, and $8 million will support the design and Sierra Leone is one of the few fragile and conflict net and develop a sovereign risk insurance Impact Assessment (JHDINA) in order • Technical assistance to support implementation of financial risk implementation of a sovereign disaster affected countries to set updedicated national funds scheme. to ensure that funds are channeled to risk insurance scheme and co-financing as a contingency for future emergencies, which will target populations including the poor, management solutions premium payments. be channeled through the safety net in the wake of an youth, and women. emergency. • Financing public goods focused on analytics and technical MILESTONES SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC innovations to allow robust design and effective implementation of Internal World Bank GRiF launched at World First GRiF Steering First High Level Consultative GRiF moves to World Bank senior First GRiF Second GRiF Second GRiF Second High-Level Third GRiF grant Fourth World Bank Group Fifth GRiF Global Risk Completion GRiF Secretariat financial solutions. Concept Review to Bank Annual Meetings Committee meeting Group of the InsuResilience implementation management program grant program grant Steering Consultative Group awarded, the GRiF grant President positions grant Financing Facility of the GRiF participated in the establish GRiF in Bali Global Partnership phase presents GRiF at awarded, to awarded, to Committee meeting of the first for global awarded to GRiF as a priority awarded to Technical Theory of UN Climate Change

2018 2019 G20 meetings in Mozambique Sierra Leone meeting InsuResilience analytics Malawi at the UN Climate Jamaica Committee Change Conference COP Japan Global Partnership Action Summit established