Climate-vulnerable countries face escalating risks from climate change and disasters, yet current budgets fall short of what’s needed to protect lives and economies. CDRFI can help manage these risks, but limited access to affordable financial tools threatens progress.

Investing in risk financing solutions—like premium and capital support (PCS) for insurance—can enhance resilience without deepening debt burdens. However, many vulnerable nations struggle with weak public debt profiles, limiting their ability to participate in insurance markets. Innovative financial mechanisms, including concessional financing and smart premium subsidies, are crucial to closing this gap.

Scaling up support for climate finance and ensuring transparent, inclusive delivery structures will help vulnerable countries access pre- and post-disaster funds, safeguarding development gains and driving long-term resilience.