Contribution to the Sustainable Development Goals
Mitigating Existential Risks
Cyclones, floods, droughts – natural disasters that are increasing in intensity and frequency are posing an ever-greater challenge around the world. Developing countries and emerging economies are particularly affected due to their greater vulnerability. Natural disasters threaten to undo past development successes and destroy the livelihoods and production bases of entire societies. And even if precautionary measures such as adapted infrastructure are implemented, the risk of existence-threatening damage remains.
At the 2017 UN Climate Change Conference in Bonn, the “Global Partnership for Climate and Disaster Risk Finance and Insurance Solutions”, the InsuResilience Global Partnership, was launched. It brings together representatives of the G20, the 20 most influential industrialised and emerging economies, together with representatives of the V20, the world's 48 poorest and most vulnerable countries, international organisations, the private sector, civil society and research institutes. Together, they develop and implement solutions for risks arising from climate change and natural disasters.
As part of the InsuResilience Global Partnership, KfW supports the development of innovative climate risk insurance products and climate insurance markets. Risk transfer through insurance is aimed at reducing the risk of loss for individual policyholders by distributing the losses caused by natural disasters and the associated costs across many shoulders.
On behalf of the German Federal Government, KfW promotes targeted projects at the micro level that mitigate the impact of climate disasters on individual stakeholders; it also pursues indirect macro approaches, such as insuring (supra)national risk pools. KfW's portfolio currently comprises nine projects with a volume of around EUR 250 million.