Zim can leverage on Climate funding to mitigate climate change impact

Zim can leverage on Climate funding to mitigate climate change impact

Staff Writer

Zimbabwe can leverage on Climate and environmental risk insurance funding available on the international market to help mitigate the impacts of climate change in Zimbabwe, United Nations Development Programme has said

This comes at a time developing countries have been urged to push for unconditional access to climate finance from bilateral and multilateral financial institutions as they continue to lag behind.

Presenting at recent  Zimbabwe public debt indaba United Nations Development Programme senior economist Ojijo Odhlambo said new and innovative funding mechanisms for climate response included debt for nature swaps, Green climate sustainability bonds ,Catastrophe bonds, Climate and environmental risk insurance ,Climate and environmental risk finance and diaspora bonds among others

“Climate risk insurance is designed to help protect individuals, small businesses or entire countries from permanent damage caused by the impact of extreme weather events. Such a scheme strengthens financial resilience in the short-term due quick disbursement of payments in case of emergency, and in the long-term can contribute to disaster risk reduction,” he said.

Related to climate risk insurance, Odhlambo said, was ex-ante climate and environmental risk financing instruments such as contingent credit lines, calamity funds, catastrophe bonds or climate risk insurance.

These , he said  allowed  funds to be immediately available in the event of a disaster financing instruments, unlike, ex-post long-term donor relief and rehabilitation assistance, budget reallocation, tax increase, or conventional credits.

Climate variability and change affects agricultural production and productivity, increases pressure on natural resources and negatively impacts ecosystem services, with the poor being disproportionately affected.

Rapid natural resources depletion and environmental degradation have been noted to  affect  environmental sustainability, further impoverishing vulnerable groups, especially women, youth and other marginalised populations

Climate change effects are more severe in low agricultural] potential areas, fragile ecosystems and habitats therefore, affecting major economic activities.