Integrated climate risk management for adaptation to climate change

Project description

Project title: Promoting integrated climate risk management and transfer
Commissioned by: German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU)
Country: Ghana, Global
Lead executing agency: Ministry of Finance (MoF)
Overall term: 2015 to 2019


Extreme weather events in the wake of climate change are leading increasingly often to natural and environmental disasters. In 2013 alone, there were 330 natural events worldwide that claimed human lives and caused significant destruction and economic loss. The catastrophic floods in the UK in 2007 caused material damage in excess of USD 4 billion in total.

In the international debate on climate change mitigation and adaptation as part of the Framework Convention on Climate Change, the issue of climate and disaster risk management is becoming more and more important in the light of the adaptation measures taken by those countries that are particularly severely affected. The Paris Climate Agreement and the Sendai Framework for Disaster Risk Reduction explicitly refer to risk transfer and insurance solutions as a way of dealing with the consequences of climate change.

The G7 launched the InsuResilience initiative in Elmau, Germany in June 2015. The aim of this initiative is to offer 400 million poor and vulnerable people in developing countries direct or indirect insurance protection against the risks of climate change by 2020.

In Ghana, the impact of climate change is evident in the increasing average temperatures, in the reduced and variable level of rainfall on the one hand and in the greater risk of flooding on the other. Agriculture contributes around 40 per cent of Ghana’s gross domestic product and predominantly comprises rainfed farming activities. As a result, farmers are particularly at risk from droughts and floods.


The Ghanaian Government puts an integrated climate risk management strategy in place to protect smallholders and commercial agribusinesses against the financial risks associated with extreme weather events.
Integrated climate risk management strategies are also made available to three other countries.


The project is combining aspects of disaster relief and effective risk reduction measures with the benefits of insurance solutions. It is cooperating with officials from various relevant sectors in four different countries. The project team is working closely with the Munich Climate Insurance Initiative (MCII) on project implementation.

In Ghana, the project is supporting the Ministry of Food and Agriculture, the Ministry of Finance and the National Disaster Management Organisation. Partners are training smallholders in how to deal with the future challenges of climate change by using appropriate agricultural practices. It is also assisting the Ghanaian partners in preparing for accession to the African Risk Capacity (ARC). The ARC makes it possible for African governments to finance disaster and emergency measures in the event of severe droughts or flooding via an insurance option at African Union level.

In China, the project is devising strategies for integrated climate risk management designed to protect public infrastructure against storm and flood damage. Integrated solutions are also being developed to insure the renewable energy infrastructure in Barbados against storm risks. In Morocco, meanwhile, the project is working on integrated climate resilience strategies to protect industrial zones against flood and drought damage. All strategies are being developed through partnerships between governments and the private sector – both with partners in ministries and with partners at provincial and district level.

The project is compiling the strategies, recommendations and lessons learned from international cooperation so that these can be prepared and fed into the international debate. This will make it possible to extend the approaches and strategies and to roll them out on a larger scale.


Further Information