The Impact of COVID-19 on Climate Change and Disaster Resilience Funding - Trends and Signals

Prior to Covid-19, concerns were being raised that funding for climate and disaster resilience was insufficient to meet the goals of the Paris Agreement and Sendai Framework. Since the pandemic, initial signals are that the funding gap will widen. Opportunities exist to harness co-benefits for pandemic recovery and climate and disaster resilience. To leverage climate and disaster resilience finance, especially during the Covid-19 response, decision-making needs to be more risk-informed and incorporate risks from multiple threats.

This briefing note recommends:

• Adapt existing anticipatory action/early warning and response finance mechanisms to a broader range of threats, including pandemics, and continue to improve their design and implementation.
• Do not create standalone Covid-19 recovery plans, but integrate them into low-carbon and resilient development plans, building on existing efforts.
• Donor countries need to get back on track in leveraging finance towards climate change adaptation and disaster risk reduction and ring-fence such commitments, including those within the 0.7% gross national income targets.
• Further consideration is required to offer de-risking financial instruments to engage the private sector.