Disaster Risk Finance Strategy: Guideline for Pacific Island Countries

A Disaster Risk Financing (DRF) Strategy is an essential element that can help Pacific Island Countries (PICs) develop ways to meet the costs associated with reducing and addressing economic and social losses from various types of disasters and climate change impacts.

The main purpose of this Disaster Risk Finance (DRF) strategy guideline is to enable the design of feasible, effective, efficient, and adaptable financing mechanisms and formulate underlying financial instruments, for disaster risk reduction, retention and transfer. The guideline provides a step-by-step account of how Pacific Island countries can develop national DRF strategies. It touches upon the characteristics, strengths, and weaknesses of these instruments, and how they can be combined to develop a coherent, cost-effective approach.