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21 InsuranceasaResponse toLossandDamage? 503
there are elements ofmutuality in setting country-specific trigger points and caps,
whichlargelydeterminepremiums,andalsoelementsofsolidaritygivensubstantial
donor support.
ThePCRAFI, incontrast,basespremiumslargelyonability-to-payofitsmember
countriesratherthanacalculatedrisk.Thismeanstherearesubstantialcrosssubsidies
across member states. In addition, multiple development partners and IDA credit
have contributed to the establishment of the pool as well as to premium support.
ThePCRAFI is thusbasedprimarily on theprinciple of solidarity in termsof both
outside- and inside-pool support.
Interestinglytheprincipleofaccountabilityhasnotbeeninvokedinjustifyingthe
contributionsof thedonorcommunity to thesesystems,eventhoughclimatechange
is a concern to all regional pools. However, not surprising after the devastating
2017HurricanesHarveyandIrma, theattributionof thecoveredhazards toclimatic
change is under investigation forCCRIF and the other pools.More specifically, as
aninnovativeproposition,ARCissettingupanExtremeClimateFacility(XCF)that
wouldbecapitalisedbytheinternationalcommunityif trendsinextremeweatherare
foundattributabletoclimatechange(Wilcox2014).Thus,theXCFcanbeconsidered
amanifestationofclimatechange risk, although there isnodirectdiscussionof this
facilityextractingpaymentsbasedongreenhouseemissionsfromwealthycountries,
and thusnodirect appeal to theaccountabilityprinciple.
Box21.3TheExtremeClimateFacility(XCF)oftheAfricanRiskCapacity(ARC)
Function
Additionalfinancingforcountriesalreadymanagingtheircurrentweatherrisksthrough
ARC.
Data-drivenmodusoperandi
Payments to countrieswill be entirely data-driven over a 30 year period—if there is
no significant increase inextremeeventsover current climatology, thennopayment is
made.
ClimateAdaptation
Countriesmust use payments to invest inDRRor climate change adaptionmeasures
specified inpre-definedcountry level adaptation funds.
Scale
Paymentsizewouldincreasewithextremeeventnumberandmagnitudeoverandabove
apre-specifiedthreshold,correspondingtothedegreeofconfidencethatextremeevents
are increasingdue toclimatechange.
Action focus
LeveragingARC’sexistinginfrastructure,XCFwillensurethatcountriesandtheinter-
national community properlymonitor climate shocks and are financially prepared to
undertakegreater adaptationmeasures should their frequencyand intensity increase.
SourceWilcox (2014)
Loss and Damage from Climate Change
Concepts, Methods and Policy Options
- Title
- Loss and Damage from Climate Change
- Subtitle
- Concepts, Methods and Policy Options
- Authors
- Reinhard Mechler
- Laurens M. Bouwer
- Thomas Schinko
- Swenja Surminski
- JoAnne Linnerooth-Bayer
- Publisher
- Springer Open
- Date
- 2019
- Language
- English
- License
- CC BY 4.0
- ISBN
- 978-3-319-72026-5
- Size
- 16.0 x 24.0 cm
- Pages
- 580
- Keywords
- Environment, Climate change, Environmental law, Environmental policy, Risk management
- Categories
- International
- Naturwissenschaften Umwelt und Klima