Transformative finance for climate-resilient development

Despite recent advances in global climate finance architecture, the amount of funds available for risk reduction and build resilience in the world’s most vulnerable countries is still insufficient. There is an urgent need to overhaul the climate and disaster risk finance landscape in order to safeguard the most vulnerable people in the world from growing loss and damage from climate change and reduce the climate finance gap. Theories, data, and conceptual frameworks for operationalizing such transformative changes are currently still developing. Based on the analysis of existing evidence on transformative climate finance landscape, this paper makes the case that, in order to achieve climate-resilient development, we need to fully integrate transformative disaster risk finance approaches into the broader climate finance debate that addresses not only mitigation concerns, but also caters to the financial needs building resilience of both people and nature.