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Finance for disaster risk reduction

Briefing/policy papers

Written by Katie Peters, Alice Caravani

​This note provides information relevant to the agreement of target (vi) of the draft Post-2015 Framework for Disaster Risk Reduction (DRR), which reads: [Increase flow of additional, sustained and predictable means of implementation, in particular, provisions of financial resources for disaster risk reduction including public investments, technology transfers, capacity building etc.; from developed countries to developing countries by [x percentage of gross national income] per year up to 20[xx].

DRR is financed through multiple sources: private and public, national and international. Private investment includes, for example, foreign direct investment, insurance mechanisms and remittances. Public finance includes international cooperation both bilateral and multilateral, for example through development, humanitarian and climate change finance, and specific humanitarian appeals. Other sources include philanthropic and civil society investments. Significant national investments into DRR are also being made, for example, in the Philippines, Indonesia and India.

The focus of this briefing is on international concessional public finance for DRR (reflecting the nature of target (vi) of the draft 2015 framework). Understanding and tracking such flows from developed to developing countries is complex when DRR is most effectively delivered through investments in risk-sensitive development.

This note was produced as part of a series of briefings to give those without expert knowledge on DRR the key facts relating to the areas under negotiation at the World Conference on Disaster Risk Reduction (WCDRR). The conference was held in Sendai, Japan, 14-18 March 2015, the outcome of which was the Sendai Framework for Disaster Risk Reduction 2015-2030.

Read more about ODI's engagement at the 2015 World Conference on Disaster Risk Reduction.

Katie Peters and Alice Caravani