The global climate insurance initiative will help vulnerable and low-income communities to withstand and mitigate the impacts of natural disasters with Ethiopia introducing and implementing similar mechanism years before the initiative came to spotlight, said Ethiopia's Ministry of Environment, Forest and Climate Change.
The idea InsuResillance was tabled and proposed officially and globally by the German government at the climate conference held in Marrakesh, Morocco.
In the conference, Ethiopia has echoed the need to come up with financial protections of vulnerable communities, Debasu Bayleyegn, Climate Change Implementation Director General at the Ministry told The Ethiopian Herald.
The impact of climate change is irreversible but countries must find the ways to mitigate the consequence of natural disasters and speed up the recovery process.
Natural disasters have increased in intensity and frequency over the past years, so are their repercussion effects in developing countries. So the global initiative is directed at protecting the most vulnerable and low-income communities through affordable financial insurances.
In the face of the rising costs of climate change, new forms of financial protection have increasingly become imperative partly to protect the most vulnerable countries. Hence, the initiative aims to promote access to direct and indirect insurances.
Ethiopia has introduced the scheme before the global initiative came to the spotlight. The nation has piloted the scheme in five states which proofed effective. Being vulnerable country to recurrent droughts, Ethiopia values the importance of the initiative and would do its level best for the effective implementation of the global commitment.
So far, countries have pledged to contribute millions of USD to the initiative with German promising to contribute around 160 million USD.