Global Shield Solutions Platform launched as financing vehicle to address climate change
The Global Shield Solutions Platform (GSSP), a new multi-donor grant facility and one of the core financing vehicles of the Global Shield, has officially been launched to help vulnerable countries effectively address loss and damage exacerbated by climate change.
Launched at the InsuResilience Global Partnership Annual Forum on June 9th, held at the Gustav-Stresemann-Institute in Bonn, Germany, the GSSP provides comprehensive support to vulnerable countries.
It provides both advice and grant funding for both research and education as the groundwork for locally adapted financial solutions.
The facility is expected to contribute to increasing financial protection of vulnerable countries through funding the development and application of climate and disaster risk finance and insurance solutions.
It is mandated to support Global Shield partner countries in “developing and implementing financial instruments that provide better preparedness and more reliable disaster response.”
By increasing pre-arranged finance such as regional risk pools, contingency funds or shock resilient loans, via GSSP, the impacts of disasters can be reduced, ultimately making vulnerable economies more resilient.
GSSP is managed by the Frankfurt School of Finance & Management, with initial funding from the Federal Republic of Germany, France, and Denmark.
Global Shield was launched at the COP27 climate change conference in Egypt in 2022 by the Vulnerable 20 Group of Finance Ministers (V20) of 58 climate vulnerable economies and the Group of Seven (G7).
Sara Ahmed, V20’s Finance Advisor, commented on the launch of GSSP, “Time is not on our side and only waiting for solutions would be an injustice. The GSSP is a hallmark of collaboration among the climate vulnerable economies and advanced economies. The platform is a recognition that it would be unfair to let climate vulnerable economies whose people are least responsible for the crisis carry the risk of rapidly crumbling cliffs of financial and social protection. GSSP brings new resources to leverage the full potential of the pre-arranged finance toolkit to accelerate the building of protection systems.”
“Increasing the resilience of vulnerable people in the Global South against climate risks is at the heart of the Global Shield against Climate Risks and a priority of Germany’s engagement on climate policy. Together with our partners, we therefore support the initiative and I congratulate the Global Shield Solutions Platform on its successful launch. GSSP is one of the central financing vehicles under the Global Shield and helps to avert and minimise losses and damages caused by climate change. With its needs-driven, inclusive approach, the GSSP will make an important contribution to achieving the Global Shield’s ambition to protect the lives and livelihoods of vulnerable people and communities,” said Dr Bärbel Kofler, Parliamentary State Secretary to the German Federal Minister for Economic Cooperation and Development.
Dr. Annette Detken, Head of the Global Shield Solutions Platform, added, “The Global Shield Solutions Platform represents a major step forward in giving the Global South a voice in jointly building local financial capacity and increasing the effectiveness and efficiency of post-disaster response. We welcome the opportunity to host the GSSP at Frankfurt School of Finance & Management. We build on our experience of providing sustainable and innovative Climate and Disaster Risk Finance and Insurance (CDRFI) solutions. We value the commitment and expertise of our contributors, and the important role of the V20 in setting up the Global Shield and supporting the GSSP.”
