… as multi-stakeholder engagement process on Global Shield Initiative, Global Risk Modelling Alliance begins
Financial instruments that can be activated quickly in response to climate-related emergencies are essential to establish mechanisms that provide pre-arranged and trigger-based financing to ensure timely and effective responses to climate-related challenges, Finance Minister Ken Ofori-Atta has said.
According to the minister, accurate information regarding climate risks is crucial for allocating resources effectively, identifying vulnerable areas and designing appropriate adaptation strategies. He believes that pre-approved and trigger-based financing mechanisms are essential on the financial front during emergencies brought on by climate change.
At the Global Shield against Climate Risks and Global Risk Modelling Alliance First Country Workshop in Accra, Mr. Ofori-Atta said signing up for these alliances demonstrates the country’s commitment to minimising the loss and damages caused by climate change while strengthening adaptive capacity, enhancing resilience, and forging a sustainable future.
However, forging ahead with assessments under the alliance, the minister said, requires unwavering support and collaboration from agencies, private sector partners and international organisations to provide accurate and up-to-date data and develop robust risk models.
“To ensure success on the funding front, stakeholders must use data-driven decision-making to prioritise interventions, mobilise financial resources, and implement timely solutions to manage climate risks,” he said.
In addition, Mr. Ofori-Atta stated that social protection programmes must be strengthened to provide assistance to those most affected by climate change, adding: “Easing the burdens of vulnerable communities, smallholder farmers and informal sector workers is necessary through expanding social safety nets”.
Furthermore, the Global Risk Modelling Alliance is expected to play a key role in local and regional resilience-building by giving localised climate risk data and analytics.
“Moreover, credible data must be made available to investors domestically and internationally. Agreeing with stakeholders’ sign-up, it will align with our climate objectives and exhibit our commitment to creating a climate-resilient economy. Additionally, it will attract sustainable funding, encouraging more investments in Ghana and the sub-region,” he said.
The German Government, according to the Minister of Finance, provided seed funding worth €170million during COP 27 for the Global Shield and related climate risk finance instruments. Denmark, Ireland, Canada, France and the EU have also pledged funds.
Africa has over the last two decades lost over US$200billion due to climate change, with Ghana requiring over US$12billion to implement its adaptive-energy pathway objectives to minimise climate risks.
Ghana has experienced rising temperatures, increased and intensified floods and droughts, erratic rainfall patterns – resulting in significant financial losses and devastating agricultural, infrastructural and overall socio-economic instability.
Other small island developing countries are also increasingly affected by climatic-induced changes, according to the 2022 Intergovernmental Panel on Climate Change (IPCC) report, indicating the position of Ghana as a leading country in developing an effective approach that addresses the impact of climate change.
The Global Financing Summit, held recently for two days, provided a significant sense of global support behind the need to develop a financial system that is fit for climate, and equity that ensures debt sustainability and prosperity, highlighting the need for powerful coalitions to address climate crisis.
Furthermore, the need for a regional approach to green investment, promoting low carbon economies, was emphasised.
