The impacts of climate change increasingly undermine efforts of sustainable development and poverty reduction. Climate and disaster risk finance and transfer mechanisms can offer solutions to address these issues, but they need to be designed appropriately to cater to the needs of vulnerable groups and communities and enable more resilient and sustainable economic development.

This working paper explores inclusive and participatory risk finance and transfer mechanisms as part of a comprehensive risk management framework, including stakeholder roles and responsibilities, climate risks and loss & damage, cross-cutting issues (such as gender, youth, and vulnerable communities), the policy landscape, access to information and technology, public-private partnerships, and local community engagement.