Climate change: Best practices, challenges and lessons learned from existing financial instruments at all levels that address the risk of loss and damage
This document compiles submissions made by several Parties and organizations, with the aim to encourage comprehensive risk management by the diffusion of information related to financial instruments and tools, addressing the risks of loss and damage, associated to climate change. A number of valuable lessons are reported from the application of the described instruments and tools: Enabling environments are central to the effective employment of financial instruments; Putting in place financial instruments requires rigorous risk assessment; Comprehensive climate risk management requires a smart combination of financial instruments and tools; Linking financing for disaster risk management and adaptation bears large potential for minimizing, averting and addressing loss and damage; Ongoing capacity-building and appropriate donor engagement is required for the effective use of financial instruments; Specific financial instruments and tools are needed to reach the most vulnerable; Public-private partnerships can enhance effectiveness of financial instruments; and Existing financial instruments and tools may be inadequate to address the full spectrum of losses and damages associated with the adverse effects of climate change.