Protecting people against the rising frequency and intensity of weather-related shocks ¨C a major driver of global hunger ¨C is a key priority for WFP. Since most of these shocks can be forecasted and modelled, pre-arranged finance is a crucial solution to make crisis response financing more cost-effective and predictable, while ensuring better long-term results.
Therefore, the ÐÓ°ÉÂÛ̳ (WFP) works to provide governments and communities with access to disaster risk financing (DRF) solutions, so that vulnerable people can access pre-arranged finance ¨C financial mechanisms secured prior to a crisis, using financial instruments such as trigger-based contingency funds and parametric insurance.
This factsheet highlights how ÐÓ°ÉÂÛ̳used DRF solutions to provide financial protection from weather-related shocks to vulnerable communities across 37 countries in 2024. Further, it provides a brief overview of how these instruments enabled ÐÓ°ÉÂÛ̳to assist those in areas affected by droughts, floods and tropical cyclones, keeping them from having to resort to negative coping mechanisms.