Canada to invest $50 million in G7 climate risk insurance initiative in developing countries
Ottawa - Today, the Honourable Catherine McKenna, Minister of Environment and Climate Change, announced Canada's contribution of Can$50 million to the G7 Initiative on Climate Risk Insurance to help people in developing countries protect themselves against the economic consequences of more intense and increasingly frequent natural catastrophes like severe flooding, droughts or heavy storms.
Insurance helps poor and vulnerable countries build resilience to the impacts of climate change by covering a portion of the risks that arise from natural hazards and extreme weather events. Together with the G7 and our partner countries, Canada is working to provide up to an additional 400 million poor people with insurance against the risks of climate change by 2020.
Canada is a leading contributor in supporting climate risk insurance in developing countries, notably through its participation in the Caribbean Catastrophe Risk Insurance Facility. Since its inception in 2007, the Facility has made 13 payouts for hurricanes, earthquakes and excess rainfall totalling approximately US$38 million to eight member governments.
Canada's contribution to the G7 Initiative on Climate Risk Insurance will help to stimulate greater coverage of effective climate risk insurance markets in countries that are the most vulnerable to natural disaster. In doing so, we will work closely with all stakeholders by funding insurance policies.
Today's announcement is part of Canada's pledge of Can$2.65 billion over the next five years to support developing countries' transition to low carbon economies that are both greener and more climate resilient. This is the most significant Canadian climate finance contribution ever.