Climate risk financing: a brief analysis of financial coping instruments and approaches to close the protection gap

This paper presents and discusses new and established climate risk financing instruments and approaches and how they could better contribute to closing the protection gap in vulnerable countries. It provides information and new ideas to civil society organizations and policymakers who are engaged in the broader debate on finding financing solutions to compensate climate-induced loss and damage following the principles of equity and climate justice. A further aim is to address knowledge gaps and misconceptions about what can be expected and what cannot be expected from risk financing instruments. It is an analytical paper, presenting fact-findings and some recommendations derived from research, but it is not a policy paper.

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