Against a backdrop of intensifying climate risks and growing pressure on public finances, the 2nd Bonn Risk Finance Dialogue convened policymakers, researchers, practitioners, development partners, financial institutions, and civil society representatives in Bonn on 17–18 June 2026 to advance the conversation on Climate and Disaster Risk Finance and Insurance (CDRFI).

Over two days, participants exchanged ideas, shared experiences, and explored practical solutions for strengthening financial protection in climate-vulnerable countries and communities. Through thematic panel discussions, interactive workshops, and peer exchange the Dialogue focused on one overarching question: how can climate and disaster risk finance be scaled to deliver more effective, inclusive, and sustainable protection for those most exposed to climate risks? 

The programme was built around three complementary dimensions of scaling CDRFI solutions: Scaling Out, Scaling Up, and Scaling Deep, each examining a different pathway towards more resilient financial protection systems. Alongside these discussions, participants engaged in cross-cutting workshops on research, innovation, and implementation. There was also a session by MCII’s climer Programme participants, who showcased emerging perspectives from the next generation of climate risk professionals. The first day concluded with a reception at Bonn City Hall, bringing MCII's 20th anniversary celebrations to a close.

Moving Beyond Pilots to Scale Out Financial Protection

The first thematic session explored how climate and disaster risk finance initiatives can move beyond successful pilot projects to reach larger numbers of people while remaining sustainable over time. The session was moderated by Sinja Buri, Team Lead of the Climate Risk Finance Solutions Team at MCII.

Drawing on perspectives from financial institutions, civil society, insurance markets, development finance, and regional risk pools, panelists discussed why many promising pilot initiatives struggle to become lasting financial protection systems. Participants identified several common barriers, including institutional fragmentation, limited incentives, insufficient public-private coordination, affordability challenges, and weak delivery mechanisms. 

Discussions emphasized that sustainable financial protection depends not only on expanding coverage but also on ensuring that products remain understandable, trusted, and valuable for the people they are designed to serve. Building awareness, strengthening financial literacy, investing in local delivery systems, and creating clear institutional responsibilities were highlighted as critical elements for long-term success.

The session concluded with reflections on the importance of embedding financial protection within broader national systems, enabling successful approaches to continue beyond project cycles and become an integral part of wider climate and disaster risk management strategies. 

Scaling Up: Aligning Global Finance with Country-Led Financial Protection 

The second thematic session examined how international finance and institutional support can better align with country-led priorities for climate and disaster risk finance. Discussions focused on strengthening global financing architecture to provide more predictable, coordinated, and responsive support for climate-vulnerable countries. The session was moderated by Alexandra Mieth, Project Manager and Lead of strategic partnerships with the Vulnerable Twenty Group of Finance Ministers at MCII.

Panelists highlighted the progress made through initiatives such as the Global Shield against Climate Risks while acknowledging that fragmentation across institutions, financing instruments, and funding mechanisms continues to present challenges. Speakers emphasized the importance of stronger policy frameworks, improved coordination among multilateral development banks and international partners, and financing approaches that are embedded within national fiscal planning and public financial management systems rather than operating as stand-alone initiatives. 

A recurring message throughout the session was that scaling- up requires more than mobilizing additional resources. It also means ensuring that international finance responds to country priorities, strengthens domestic institutions, and creates coherent financial protection ecosystems capable of addressing increasingly complex and compounding climate risks.

Scaling Deep: Strengthening Resilience Beyond Financial Protection 

The final thematic session shifted the conversation from expanding financial protection towards increasing its long-term impact, moderated by Executive Director of MCII, Sönke Kreft. 

Rather than focusing solely on the number of people reached, discussions explored how climate and disaster risk finance can contribute to stronger resilience, improved decision-making, and more equitable resilience outcomes. Speakers emphasized that financial protection should be viewed as a strategic investment in resilience rather than simply a mechanism for post-disaster response. Discussions explored how stronger cooperation between governments, international organizations, the private sector, and local communities can help bridge the gap between financial liquidity and physical resilience while creating incentives for proactive risk reduction. 

Participants also highlighted the importance of trust, locally led approaches, accessible risk information, and stronger partnerships across all levels of governance. By connecting financial protection more closely with adaptation planning, infrastructure investment, and community priorities, CDRFI can support more resilient societies while improving preparedness for future climate shocks. 

Cross-Cutting Themes: Workshops and Networking  

Alongside the thematic discussions on Scaling Up, Scaling Out, and Scaling Deep, the second day of the Dialogue featured a series of interactive workshops and networking sessions that explored emerging research, practical experiences, and innovative approaches to advancing Climate and Disaster Risk Finance and Insurance (CDRFI). These sessions provided participants with an opportunity to exchange lessons learned across regions and sectors while identifying new pathways for collaboration and implementation.

Understanding Farmers' Demand for Insurance: Insights from Vietnam: Drawing on a collaborative research-practice project in Vietnam, this session explored what drives farmers' demand for parametric weather insurance. Participants discussed findings from an impact evaluation examining farmers' willingness to pay for insurance, as well as the influence of premium support and climate resilience training on insurance uptake. The discussion highlighted the importance of designing insurance solutions that respond to local needs while building awareness and understanding among potential users.

Strengthening Linkages Between Social Protection and Climate Risk Insurance: This workshop examined how climate risk insurance can complement adaptive social protection systems to better support vulnerable populations facing climate-related shocks. Through case studies from Rwanda and examples of digital solutions for managing integrated social protection and insurance programmes, participants explored opportunities to strengthen coordination between financial protection mechanisms and broader social protection systems, contributing to more effective and inclusive resilience strategies.

Leveraging Financial Systems to Scale Climate Risk Protection: Focusing on the role of financial institutions, this session explored innovative approaches for expanding access to financial protection through existing financial systems. Presentations covered remittance-linked insurance, blended finance mechanisms designed to unlock local adaptation investments in Senegal, and partnerships with banks and microfinance institutions to strengthen the resilience of micro, small, and medium-sized enterprises (MSMEs). Together, these examples demonstrated how financial intermediaries can play an important role in extending climate risk protection to underserved groups.

Financing Climate Recovery Pathways: Moving beyond disaster response, this workshop introduced a recovery pathways perspective to climate and disaster risk financing. Participants worked together to map how financial resources are currently mobilized and coordinated following climate-related disasters, identify key bottlenecks in recovery financing, and explore how more timely, coordinated, and resilient financing approaches can improve long-term recovery outcomes and strengthen resilience.

Developing Innovative Solutions for Financial Protection and Pre-Arranged Finance: Innovation was at the center of this session, which showcased a range of emerging financial protection solutions. Discussions included product development for humanitarian pooled funds in fragile contexts, research findings from an evaluation of parametric insurance for education in Kenya, human-wildlife conflict insurance initiatives in Kenya and Zambia, and the use of early drought prediction and monitoring technologies to strengthen anticipatory action. Together, these examples illustrated how innovation continues to expand the scope and effectiveness of climate risk finance.

Scaling Financial Protection in LDCs and SIDS: The final workshop focused on the unique opportunities and challenges of scaling financial protection in Least Developed Countries (LDCs) and Small Island Developing States (SIDS). Drawing on experiences from the Caribbean and Pacific regions, speakers shared lessons on implementing climate risk insurance solutions, highlighted gender-responsive approaches, and discussed strategies for introducing and scaling micro- and meso-level insurance products. The session underscored the importance of tailoring financial protection solutions to local contexts while promoting knowledge exchange across regions.

Looking Ahead 

Across all three thematic sessions, the Dialogue reinforced that scaling climate and disaster risk finance requires action on multiple fronts. Whether through strengthening international financing architecture, expanding sustainable financial protection to more communities, or deepening resilience through stronger local ownership and cooperation, participants agreed that effective CDRFI depends on coordinated, country-led approaches that combine innovation, partnership, and long-term commitment.

The 2nd Bonn Risk Finance Dialogue demonstrated the growing momentum behind practical solutions that can help countries better anticipate, absorb, and recover from climate-related shocks, while continuing to strengthen collaboration across the global CDRFI community.