Global Shield Financing Facility - Institutional Support 2023

This grant represents Canada’s long-term institutional support to the Global Shield Financing Facility (GS-FF). The GS-FF uses these funds along with other donors’ funding to achieve its mandate. It is not considered core funding as Canada’s contribution will not necessarily be renewed beyond 2026. The GS-FF is a multi-donor trust fund administered by the World Bank and a financing mechanism of the G7 Global Shield against Climate Risks initiative launched at the 27th United Nations Climate Change Conference in 2022. The GS-FF aims to support vulnerable countries in improving their access to financial protection against climate shocks disasters and crises by providing technical advisory services and integrated financial packages to address protection gaps as well as by building strategic partnerships through enhanced coordination among actors in the global climate and disaster risk finance and insurance sector. Formerly known as the Global Risk Financing Facility (GRiF) the new program is informed by the Global Shield in-country process to foster national ownership and amplify the voices of the most vulnerable including women and girls.

The strategic objectives stated by the GS-FF funds include: (1) engaging globally to close the protection gap comprehensively through technical support; (2) deepening partnerships with humanitarian agencies and civil society organizations including UN agencies; (3) designing integrated financial protection packages to address specific protection gaps; and (4) mobilizing private risk capital through engagement with regional risk-sharing mechanisms and the private sector. The expected ultimate outcome of the GS-FF funds is to improve climate resilience in vulnerable countries deepen crisis preparedness mobilize private capital address gender gaps in this sector and foster technical collaboration with Global Shield partners.