Germany is expanding its commitment to safeguarding the countries most affected by climate change. This was announced by Federal Minister for Economic Cooperation and Development Svenja Schulze on 28 February 2022 on the occasion of the publication of the second report of the Intergovernmental Panel on Climate Change (IPCC) on the impacts of climate change. The Federal Ministry for Economic Cooperation and Development (BMZ) is investing a further 21 million euro in the InsuResilience Global Partnership (IGP) initiative, which aims at providing financial protection for poor and vulnerable people and countries against climate risks. The funding will be administered by the InsuResilience Solutions Fund (ISF) launched by the German development bank KfW and managed by Frankfurt School. The ISF supports the development and implementation of innovative climate risk insurance products in developing and emerging economies in order to cushion the impact of climate change.
German Development Minister Svenja Schulze: “In the future, German development policy will provide even greater support to the most vulnerable countries in coping with extreme weather events or the consequences of climate change. Together with the G7 countries, the German government wants to create a global protective umbrella against climate risks and strengthen and further develop the global architecture of climate risk financing and insurance for the poorest and most vulnerable people and countries.”
Under InsuResilience, for example, African countries can purchase climate risk insurance through the African Risk Capacity of the African Union. The most recent example is cyclone Batsirai on Africa's east coast. In Madagascar, more than 60,000 people lost their homes to the cyclone in early February this year. To cushion the consequences, Madagascar receives a payout of over ten million euro.