World Bank approves shield financing credit for climate change

• Published date: 17 January 2023
• Publication title: Nigeria - The Nation

THE World Bank Group has announced a Global Shield Financing Facility to help developing countries access more financing for recovery from natural disasters and climate shocks.

This facility will support the Global Shield Against Climate Risks, a joint initiative launched at COP27 by the G7 and V20 to better protect poor and vulnerable people from disasters by pre-arranging more financing before disasters strike.

World Bank Managing Director of Operations, Axel van Trotsenburg, said: 'We estimate that by 2040, over 130 million people could be pushed into extreme poverty by climate change'.

'Access to disaster risk finance and insurance solutions for low-income countries is part of the World Bank's strategy for helping them adapt to the growing risks of natural disasters. We will contribute to the Global Shield initiative through our analytical and advisory work, policy dialogue and country lending operations,' he said.

The Global Shield Financing Facility will channel grants to developing countries through World Bank projects or through projects prepared by other participating partners, including UN agencies and multilateral development banks. It will also work closely with key stakeholders, such as civil society organisations, risk pools...