Enabling the Shift Towards a New Finance Paradigm: Scaling up Adaptation Investments for Smallholders Using Novel Insurance Models

When: Monday 4 December at 18:00-19:30 (GST)

Where: Uganda Pavilion, Cop28, Dubai

This is an official side event of the UN Climate Change Conference (COP28).

The NDC Action Project, supported by the German Government and led by UNEP and UNEP CCC, collaborates with Uganda and Ghana to mitigate financial risks for smallholder farmers, facilitating access to essential funds for climate adaptation. In Uganda, a pioneering hybrid insurance product utilizing Picture Based Insurance (PBI) has been conceptually developed and recently secured funding from the Adaptation Fund Climate Innovation Accelerator, paving the way for further development.

This innovative insurance product is tailored for smallholder banana farmers, with PBI also showing promise in Kenya, where ACRE Africa is conducting successful trials. The World Food Programme (WFP) will contribute insights into its work with PBI in Ethiopia and present the R4 microinsurance model, currently operational in Kenya, Uganda, and several African countries, with prospects for wider adoption.

This side event will discuss the importance of price-based insurance products to shield smallholder farmers from market fluctuations. Government ministries will share their insights on the critical role of public finance in supporting agriculture and adaptation, advocating for increased risk-taking and conducive environments to mobilize additional capital.

For more information, contact sumalee.khosla@un.org