Insurance fund for climate impacts announced at UN talks
The Group of Seven leading economies launched a new insurance system Monday to provide swift financial aid when nations are hit by devastating effects of climate change
SHARM EL-SHEIKH, Egypt (AP) — The Group of Seven leading economies launched a new insurance system Monday to provide swift financial aid when nations are hit by devastating effects of climate change.
The so-called Global Shield is backed by the V20, an alliance of climate vulnerable nations chaired by Ghana, and the G-7 chaired by Germany. The scheme is designed to kick in with aid in the event of climate-related disasters in vulnerable nations. But critics argue it doesn't cover slower climate change effects, such as rising seas or the slow loss of arable land, nor does it account for historical harms.
Under the newly launched shield, countries will receive more than $200 million dollars in funding, mostly from Germany. Initial recipients include Bangladesh, Costa Rica, Fiji, Ghana, Pakistan, the Philippines, and Senegal. In the last 20 years, nations in the V20 group are estimated to have lost $525 billion to their GDP because of climate change-related events, according to a report released by the group.
Ghana’s finance minister and V20 chair Ken Ofori-Atta called it “a path-breaking effort” that would help protect communities when lives and livelihoods are lost.
