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2019, 23rd October

Finance for disaster risk reduction – Roundtable organized by European Commission DG ECHO and UNDRR

Finance for disaster risk reduction – Boosting public-private sector cooperation

CLARA Project Coordinator Jaroslav Mysiak (Euro-Mediterranean Center for Climate Change Foundation) will take part to the round table organized by which will take place on 24th October 2019, 09:00-17:00 at DG ECHO premises in Brussels (Rue Joseph-II 79).

Abstract:

Europe has taken a leadership role in sustainable finance and climate-related disaster risk has emerged as a particularly important strand within the sustainable finance agenda. Risks from climate change and disasters caused by natural hazards pose a systemic threat to the financial system due to a lack of transparency and awareness in the marketplace. While we don’t have a total picture of Europe’s financial exposure to climate-related disaster risks, we know that they are already resulting in significant economic losses. The total reported economic losses caused by weather and climate related extremes in European Member States from 1980–2017 amounted to almost half a trillion euros. In the future, losses and disasters from climate impacts will increase dramatically if greenhouse gas mitigation goals are not met and if we fail to deliver adequate resilience. Cascading risks may create a further compounding effect. The sustainable finance action plan has direct links with disaster risk reduction, focusing on improving risk management (including natural disasters) in banks and insurance companies and increasing the flow of financial capital to sustainable activities. Relevant actions of the plan include voluntary guidelines for better disclosure of climate-related information (e.g. insurance losses) and the development of a taxonomy of sustainable activities for investment (e.g. activities that contribute to climate change adaptation which has a strong connection with disaster risk reduction). UNDRR has identified some proposals for actions that could be considered as next steps in their recent report. As critical next steps, it is important to better understand Europe’s financial exposure to disaster risk and how to drive risk-informed investments. At the same time, disaster risk financing has been high on the agenda as a means of risk management. DG ECHO is increasingly looking at what risk financing solutions there are to maximize humanitarian and civil protection funding globally. Both topics – sustainable finance and disaster risk financing require meaningful cooperation with the private sector. The purpose of the roundtable is to outline current challenges and best practices with the aim of unlocking private sector finance in the EU and globally, and outline some general directions of action as input to the Sustainable Finance actions and the work of external relations services of the Commission. These results could feed into the next steps for implementation of the potential future European Commission Sendai Framework Action Plan (2021-2030).

Full programme can be accessed here

2019, 23rd October

Finance for disaster risk reduction – Roundtable organized by European Commission DG ECHO and UNDRR

 

Finance for disaster risk reduction – Boosting public-private sector cooperation

CLARA Project Coordinator Jaroslav Mysiak (Euro-Mediterranean Center for Climate Change Foundation) will take part to the round table organized by which will take place on 24th October 2019, 09:00-17:00 at DG ECHO premises in Brussels (Rue Joseph-II 79).

Abstract:

Europe has taken a leadership role in sustainable finance and climate-related disaster risk has emerged as a particularly important strand within the sustainable finance agenda. Risks from climate change and disasters caused by natural hazards pose a systemic threat to the financial system due to a lack of transparency and awareness in the marketplace. While we don’t have a total picture of Europe’s financial exposure to climate-related disaster risks, we know that they are already resulting in significant economic losses. The total reported economic losses caused by weather and climate related extremes in European Member States from 1980–2017 amounted to almost half a trillion euros. In the future, losses and disasters from climate impacts will increase dramatically if greenhouse gas mitigation goals are not met and if we fail to deliver adequate resilience. Cascading risks may create a further compounding effect. The sustainable finance action plan has direct links with disaster risk reduction, focusing on improving risk management (including natural disasters) in banks and insurance companies and increasing the flow of financial capital to sustainable activities. Relevant actions of the plan include voluntary guidelines for better disclosure of climate-related information (e.g. insurance losses) and the development of a taxonomy of sustainable activities for investment (e.g. activities that contribute to climate change adaptation which has a strong connection with disaster risk reduction). UNDRR has identified some proposals for actions that could be considered as next steps in their recent report. As critical next steps, it is important to better understand Europe’s financial exposure to disaster risk and how to drive risk-informed investments. At the same time, disaster risk financing has been high on the agenda as a means of risk management. DG ECHO is increasingly looking at what risk financing solutions there are to maximize humanitarian and civil protection funding globally. Both topics – sustainable finance and disaster risk financing require meaningful cooperation with the private sector. The purpose of the roundtable is to outline current challenges and best practices with the aim of unlocking private sector finance in the EU and globally, and outline some general directions of action as input to the Sustainable Finance actions and the work of external relations services of the Commission. These results could feed into the next steps for implementation of the potential future European Commission Sendai Framework Action Plan (2021-2030).

Full programme can be accessed here