As climate-related disasters grow in frequency and intensity, ÐÓ°ÉÂÛ̳is scaling up financial protection for the world¡¯s most vulnerable communities through a comprehensive risk financing approach. This includes both inclusive, community-level solutions and macro-level instruments that enable governments to respond faster and more effectively to climate shocks. WFP¡¯s Inclusive Risk Financing (IRF) approach builds on over a decade of experience, providing smallholder farmers, pastoralists, and entrepreneurs with access to climate risk insurance, savings, and credit. In 2024, IRF reached over 3 million people across 21 countries, delivering nearly US$250 million in financial protection. At the same time, WFP¡¯s macro-level Disaster Risk Financing (DRF) solutions¡ªsuch as parametric insurance and contingency funds¡ªhelp governments and humanitarian actors deliver timely assistance. In 2024, these instruments protected 2.8 million people across Africa, Latin America, Asia, and the Pacific, with over US$13 million in payouts reaching 600,000 people. These factsheets outline how both approaches are supported by a dedicated Trust Fund that enables strategic, flexible investments in innovation, research, premium subsidies and more, who supports this funding and how WFP¡¯s risk financing solutions are closing the crisis protection gap and building more resilient food systems.
