📋 Tender Overview
Project Name
Developing Innovative Financial Instruments to Address Climate Risks for Agriculture and Natural Capital in Asia.
Project Number
59199-001
Country / Economy
Regional
Cambodia
Nepal
Pakistan
Sri Lanka
Viet Nam
Project Status
Proposed
Project Type / Modality of Assistance
Technical Assistance
Source of Funding / Amount
Sector / Subsector
Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development - Land-based natural resources management - Water-based natural resources management
Gender
Some gender elements
Description
The proposed regional technical assistance (TA) aims to improve the adoption of innovative financial risk management products (FRMP) to enhance climate resilience in agriculture and food systems, and sustainable natural resource management. The TA will focus on Cambodia, Nepal, Pakistan, Sri Lanka, and Viet Nam. The TA will (i) conduct comprehensive assessments to understand root causes and constraints, and the strengths and weaknesses of FRMPs that have already been piloted; (ii) explore the feasibility of developing and deploying new FRMPs such as weather index insurance (WII) and credit guarantees; (iii) develop solutions, including improved designs of the existing piloted products, their distribution channels, and financial sustainability options to ensure scalability and sustainability; and (iv) share knowledge and build capacity of stakeholders on FRMPs to support innovative climate finance solutions.
The proposed TA is aligned with Strategy 2030 Midterm Review and with Corporate Results Framework's strategic focus area on climate action and development results indicators 7 and 8 on increasing number of people with strengthened climate and disaster resilience, and food and nutrition security.
Project Rationale and Linkage to Country/Regional Strategy
Impact
Increased resilience of smallholder farmers and MSMEs to weather shocks and disaster risks in Asia.
Outcome
Improved framework conditions and mechanism to reduce climate-induced financial and/or operational losses within the agriculture and natural capital sectors due to extreme weather events.
Outputs
Enabling environment for promoting and scaling up innovative financial risks management solutions to address climate change impacts on agriculture and natural capital defined.
Integrated and innovative solutions developed and piloted (for Viet Nam).
Knowledge and partnerships for innovative agricultural insurance enhanced.
Geographical Location
Cambodia - Nation-wide; Nepal - Nation-wide; Pakistan - Nation-wide; Sri Lanka - Nation-wide; Viet Nam - Nation-wide
