Climate Risk Management: Opportunities and Challenges for Risk Pooling

This report interrogates the use of risk pooling, a form of climate insurance, as a possible framework for small state climate risk management within which other complementary finance instruments may be used. It aims to offer preliminary insights to governments of small states by assessing the feasibility of risk pooling strategies as a form of climate risk management, and to provide these governments with a greater understanding of different financial approaches to reduce climate risk, which could be important if risk pooling is deemed to be an unsuitable option.