Insurance fund for climate impact announced at COP27

The Group of Seven (G7) leading economies launched a new insurance system on Monday to provide swift financial aid when nations are hit by devastating effects of climate change.

Svenja Schulze, German Minister for Economic Cooperation and Development said “It can be immediate, immediate financial support to government for quickly rebuilding an important bridge or school with money from a disaster fund. It is all about tailor-made packages, limiting the climate damage and protecting the people most vulnerable to climate change."

Under the newly launched shield they will initially receive more than 200 US dollars million dollars in funding, mostly from Germany. Initial recipients include Bangladesh, Costa Rica, Fiji, Ghana, Pakistan, the Philippines, and Senegal. But critics argue it doesn't cover slower climate change effects, such as rising seas or the slow loss of arable land, nor does it account for historical harms.