PCRIC Invited to Share Intervention at Second Glasgow Dialogue

The Pacific Catastrophe Risk Insurance Company (PCRIC) was invited by the United Nations Climate Change to participate in the second Glasgow Dialogue (GD2) to deliver an intervention drawing on PCRIC’s experiences on specific and tangible challenges faced by Pacific nations related to new funding mechanisms.

The GD2 prioritizes the effective implementation of new funding arrangements, specifically designed to address Loss and Damage (L&D). The dialogue also emphasized the optimization of support from existing funding mechanisms, with a particular focus on addressing economic and non-economic losses, slow onset events, and extreme weather events.

The PCRIC CEO, Mr. Aholotu Palu, represented the company in Bonn, Germany and highlighted three key points: the science, policy dimension and resource availability.

Science makes it abundantly clear that climate change is a persistent reality, and predictions for the future are far from promising, as emphasized by the IPCC 2021 report. However, in the face of these daunting findings, there exists an opportunity to transform this crisis into a catalyst for positive change by taking decisive action to prevent and mitigate L&D. The essential tools and instruments required to drive this transformation are well within our reach.

Despite considerable efforts in enacting laws, developing guidelines, and formulating policies to support climate change initiatives, the effectiveness of mobilizing sufficient financial resources for national programs remains a pressing concern. While numerous organizations have provided support through various initiatives and programs, there is a need to critically evaluate whether these efforts have successfully translated into adequate funding for climate-related initiatives or if the issue has been overlooked.

Regarding resource availability, there is a need to consider two perspectives, the accessibility versus accountability and leveraging existing mechanisms versus creating new ones. While global and regional financial mechanisms, including the emerging L&D facility, aim to provide resources to countries, the process of accessing these facilities often proves challenging and time-consuming.

The current one-size-fits-all approach does not align with the capacity limitations of Pacific nations. It is crucial for the L&D facility to address these capacity issues and design programs that offer more accessible and less burdensome processes, enabling the Pacific region to access meaningful resources promptly.

The PCRIC CEO emphasized the need for the development of a “good enough” standard that can serve as an initial milestone for countries facing limitations in human and technical capacity. This approach advocates for flexibility, recognizing that a uniform and rigid process may not be suitable for all circumstances.

He concluded his intervention by sharing that, “the V20 drafted the SMART principles to systematically administer premium support because we need predictability. The SMART principles are what we need to operationalize this and look to the leadership of G7, G20 and V20 to deliver.”

PCRIC is swiftly gaining global attention as a potential game-changer in the conversation surrounding L&D. As the international community recognizes the urgent need for comprehensive solutions, PCRIC’s unique blend of financial expertise, risk management strategies, and climate science positions it as a promising player in shaping the L&D discourse. With a focus on building resilience in vulnerable Pacific Island nations, PCRIC is demonstrating its potential to be a pivotal instrument in addressing the challenges posed by climate change and the growing threats of loss and damage.