Environment and Energy

Risk Management and Insurance

People in some of the poorest developing countries will be especially vulnerable to the adverse impacts of climate change on agricultural production, water supplies, and the natural ecosystems on which they rely for basic necessities. Many of these countries are located in regions that are already subject to environmental degradation and natural disasters, as well as poverty and inadequate infrastructure. Moreover, low-lying Pacific islands are likely to become almost completely inundated by rising sea levels. For the most part, these countries have very limited financial and planning resources available to respond to climate change threats. Vulnerability assessments, infrastructure improvements, institutional reforms and risk management schemes can help developing countries cope with the anticipated adverse impacts of climate change.

Reducing vulnerability of the livelihoods is about risk management and risk reduction. Currently, development activities tend to omit climate change risks. Communities that are most vulnerable to climate change are concerned with issues of survival and do not see their livelihoods disintegrated in to different sectors. The efforts to combat global climate change and the pursuit of sustainable development and poverty eradication are therefore not mutually exclusive. For either process to be meaningful, they must be mutually reinforcing.

In addition, UNDP is involved in work to assist countries with vulnerability and adaptation assessments to address the issue of expected climate change impacts. Small island states and low-lying areas are the most at risk from natural disasters related to climate change given their limited options in terms of adaptation.

Go to: UNDP's Bureau for Crisis Prevention & Recovery, BCPR

Activities on Risk Management and Insurance
SIDS insurance workshop: Climate Change Adaptation, Risk Management, and Insurance in the Small Island State Context UNDP-FIELD. Pre CoP-9 side event held in Milan, Nov 28. 2003
Download Concept note, Final workshop report,& PowerPoint Presentations