V20 Key Initiatives
Table of Contents
Task Force on Climate, Development and the IMF
The V20 Secretariat is a member of the Task Force on Climate, Development and the International Monetary Fund, a collaboration of experts from around the world utilizing rigorous, empirical research to advance a development-centered approach to climate change at the International Monetary Fund (IMF). Climate change and policy responses to climate change pose significant risks to financial and fiscal stability, poverty and inequality and the long-run growth prospects of the world economy. As the only multilateral, rules-based institution charged with promoting the stability of the international financial and monetary system to enable longer-run growth, the Task Force argues that the IMF has a central role to play in the transition to a low-carbon and resilient global economy. The Task Force seeks to fill a crucial knowledge gap with reports, technical papers, policy briefs and blogs that span a variety of issues, including transition spillover risks, the fiscal impacts of green transitions, the IMF’s Resilience and Sustainability Trust and more. In addition to the V20, organizations of the Task Force include: G-24, African Center for Economic Transformation, African Economic Research Consortium, Boston University Global Development Policy Center, Centre for Policy Dialogue, Centre for Social and Economic Progress, Financial Futures Center, Macro and Green Finance Lab, National School of Development, Peking University, and United Nations Economic Commission on Latin America and the Caribbean. https://www.bu.edu/gdp/task-force/
V20 Loss and Damage Funding Program
A nimble program to implement loss and damage projects at the community-level in CVF-V20 member states. Phase 1 included implementation of loss and damage projects in Kenya, Malawi and Bangladesh. The implementation is nearing completion around mid-year. Phase 2 that includes implementation of loss and damage projects in the Pacific region and Ghana has been approved by the Board of the CVF-V20 Joint Multi-Donor Fund. Phase 2 implementation will commence once financing agreements are concluded. Phase 3 is a GEF-funded adaptation program for CVF-V20 member states. Final GEF approval in 2024 will kickstart the implementation of at least 50 adaptation projects.
Sustainable Insurance Facility
The V20 Sustainable Insurance Facility (SIF) is a project pipeline facility created to support the development and availability of climate-smart insurance solutions for micro, small, and medium-sized enterprises (MSMEs) in climate-vulnerable nations. The facility operates in the United Nations under the Principles of Sustainable Insurance in collaboration with the Munich Climate Insurance Initiative. https://v20sif.org/
Global Shield against Climate Risks:
Over the past decade, climate change has intensified, with storms, droughts, and floods becoming more frequent and severe, disproportionately affecting vulnerable countries and communities. Despite efforts to adapt, residual risks persist, leading to ongoing losses and damages. Addressing the urgent needs of vulnerable populations requires faster and more efficient systems for providing immediate financial assistance after climate-related disasters. In response, the Vulnerable Twenty Group (V20), in collaboration with the Group of Seven (G7) and other nations, launched the Global Shield against Climate Risks to enhance financial protection and improve disaster preparedness for vulnerable countries.
How the Global Shield Works:
The Global Shield against Climate Risks aims to close protection gaps in climate-vulnerable countries, using a tool-box of pre-arranged finance. Following the principles of subsidiarity and ownership of partner countries, the Global Shield applies a needs-based approach and works together closely with local stakeholders to build on already existing financing structures and instruments. The new Global Shield Financing Structure, consisting of three Financing Vehicles, namely the Global Shield Solutions Platform, the Global Shield Financing Facility, and the Climate Vulnerable Forum & V20 Joint Multi-Donor Fund, can provide additional support, if needed. With this approach, the Global Shield ensures a rapid response when disasters hit and thereby helps to reduce follow-up costs and accelerate economic recovery.
