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FINANCING DISASTER RISK REDUCTION IN ASIA AND THE PACIFIC

A GUIDE FOR POLICY MAKERS

DECEMBER 2020

Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO)

2020 Asian Development Bank

6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines

Tel +63 2 8632 4444; Fax +63 2 8636 2444

www.adb.org

Some rights reserved. Published in 2020.

ISBN 978-92-9262-634-1 (print); 978-92-9262-635-8 (electronic); 978-92-9262-636-5 (ebook)

Publication Stock No. TIM200415-2

DOI: http://dx.doi.org/10.22617/TIM200415-2

The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent.

ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The mention of specific companies or products of manufacturers does not imply that they are endorsed or recommended by ADB in preference to others of a similar nature that are not mentioned.

By making any designation of or reference to a particular territory or geographic area, or by using the term country in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area.

This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) https://creativecommons.org/licenses/by/3.0/igo/. By using the content of this publication, you agree to be bound by the terms of this license. For attribution, translations, adaptations, and permissions, please read the provisions and terms of use at https://www.adb.org/terms-use#openaccess.

This CC license does not apply to non-ADB copyright materials in this publication. If the material is attributed to another source, please contact the copyright owner or publisher of that source for permission to reproduce it. ADB cannot be held liable for any claims that arise as a result of your use of the material.

Please contact if you have questions or comments with respect to content, or if you wish to obtain copyright permission for your intended use that does not fall within these terms, or for permission to use the ADB logo.

Corrigenda to ADB publications may be found at http://www.adb.org/publications/corrigenda.

Note:

In this publication, $ refers to United States dollars.

Cover design by Claudette Rodrigo.

Figures and Boxes

Figures
1.1	Objectives and Measures of Disaster Risk Reduction
1.2	Triple Dividend of Resilient Infrastructure Investments
2.1	Supporting Elements of Institutionalized Disaster Risk Reduction
2.2	Enabling Factors for Public Sector Disaster Risk Reduction Finance
2.3	Matching Public and Private Actors in Financing Disaster Risk Reduction
3.1	Types and Classification of Budgetary Resource Allocation
3.2	Assessment Criteria for Disaster Risk Reduction Finance Instruments
4.1	Categories and Examples of Finance Instruments for Disaster Risk Reduction
4.2	Public Sector Nonfinancial Tools for Disaster Risk Reduction
4.3	International Development Organizations Support to Disaster Risk Reduction
A2	Entry Points for Strengthening Disaster Risk Reduction and Its Financing
A3	Assessment Criteria for Disaster Risk Reduction Finance Instruments
A6	Examples of Public Sector Nonfinancial Instruments for Disaster Risk Reduction
A9	Risk Layering in Disaster Risk Financing
Boxes
2.1	Philippines National Disaster Risk Reduction and Management Framework
2.2	Private Sector Engagement in Disaster Risk Management
2.3	Strengthening Transboundary Flood Risk Management in the Greater Mekong Subregion
2.4	Progress and Lessons from ADBs 2004 Disaster and Emergency Assistance Policy
	Reducing Disaster Risk in Pakistan with a National Disaster Risk Management Fund
4.1	Nepals Minimum Conditions and Performance Measures
4.2	Strengthening Resilience by Supporting Grassroots, Women-Led Solutions
4.3	Fiji as First Developing Country to Issue Green Bond
4.4	Integrating Disaster Risk Management in Public-Private Partnerships in Japan
4.5	Catalyzing Climate Finance with the Shandong Green Development Fund
4.6	Asian Development Fund 12 Disaster Risk Reduction Financing Mechanism
4.7	Developing Contingent Disaster Financing to Strengthen Disaster Preparedness
4.8	Urban Climate Change Resilience Trust Funds Programmatic Support to Cities
A2	Enhancing Water Supply Continuity in Hiroshima, Japan
A9.1	Asia-Pacific Climate Finance Fund
A9.2	Multi-Actor Coral Reef Insurance in Mexico

Acknowledgments

This guide was prepared under the technical assistance project Integrated Disaster Risk Management Fund: Sharing Lessons, Achievements, and Best Practice of the Asian Development Bank (ADB) financed by the Government of Canada through the ADB-administered Integrated Disaster Risk Management Fund.

The guide was prepared under the overall supervision of Steven Goldfinch, disaster risk management specialist, Sustainable Development and Climate Change Department (SDCC), ADB. Grendel J. Saldevar Perez, senior operations assistant, SDCC, and Anna Karmina Ong-Pantig (consultant) provided invaluable overall coordination support in finalizing the document.

Renard Teipelke (principal consultant, AECOM) led the development of the guide, with Antje Lang, Cerin Kizhakkethottam, and Elliot Aguirre from AECOM providing valuable inputs to the internal discussion and review of different versions of the note. Claudette Rodrigo and Edith Creus did the infographics and layout.

The document benefited significantly from discussions with and comments from Charlotte Benson, principal disaster risk management specialist; Thomas Kessler, principal finance specialist (disaster insurance), and Frederic Asseline, principal climate change specialist (climate finance), SDCC, ADB; and Sarah Wade-Apicella, programme management officer, UN Office for Disaster Risk Reduction (UNDRR).

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