The CDREP is set to enhance disaster risk mapping and modeling capabilities, which will aid in informed investment and development decisions
By our correspondent
ISLAMABAD: The Asian Development Bank (ADB) has recently greenlit a significant $500 million policy-based loan aimed at enhancing climate change adaptation and disaster risk reduction in Pakistan. This funding is part of the Climate and Disaster Resilience Enhancement Program (CDREP), which is designed to strengthen Pakistan’s ability to plan, prepare for, and respond to natural disasters effectively.
According to a press release from ADB, this program seeks to facilitate inclusive investments that bolster disaster risk reduction and climate resilience, while adopting a risk-layered approach to disaster financing. Pakistan is recognized as one of the most vulnerable countries in the Asia-Pacific region, facing annual losses exceeding $2 billion due to disaster events, with women and marginalized groups bearing a disproportionate brunt of these impacts.
Yevgeniy Zhukov, ADB’s Director General for Central and West Asia, emphasized that this program builds upon the ADB’s extensive work in the country to comprehend and mitigate climate and disaster risks. “We are proud to support an integrated and comprehensive approach to climate and disaster risk management,” he stated, highlighting the provision of disaster risk financing instruments that ensure timely and adequate funding for disaster response.
The CDREP is set to enhance disaster risk mapping and modeling capabilities, which will aid in informed investment and development decisions. It also aims to improve coordination for disaster monitoring and response, prioritizing gender-sensitive and resilient public investments. This includes initiatives for integrated flood risk management and the use of nature-based solutions.
A notable aspect of the program is its plan to mobilize climate finance from both public and private sectors, including the issuance of a domestic green sukuk (Islamic bond). Furthermore, for the first time in the Central and West Asia region, the ADB will utilize its Contingent Disaster Financing option, which provides rapid budget support in the aftermath of a disaster.
In addition to these initiatives, the program will establish a solidarity fund aimed at promoting risk transfer solutions, such as agricultural insurance, and support shock-responsive social protection mechanisms that deliver cash assistance during disasters. To aid in the program’s implementation, ADB has also approved a $1 million technical assistance grant. This comprehensive initiative reflects the ADB’s commitment to supporting Pakistan in building resilience against climate change and natural disasters, ultimately striving for a more secure and sustainable future for its vulnerable populations.
