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Innovative risk finance solutions – Insights for geothermal power development in Kenya and Ethiopia

Geothermal development is on the rise in many regions of the world. However, the high costs of field development, coupled with the high risks associated with resource exploration and drilling, still pose a significant barrier to private sector financing.

Insurance can mitigate the risks to investors and increase flows of private finance to the industry.

A project by Parhelion, a private sector insurance and risk company focused on climate finance, funded by CDKN, aimed to improve the technical capacity of Kenya’s and Ethiopia’s local insurance industries for using geothermal risk mitigation instruments.

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Climate variability and climate change: implications for chronic poverty

The focus of the paper is on India. It looks at projections of climate change under different climate models and at how these changes will alter India’s vulnerability to the climate. In particular it notes that it is not necessarily those poorest states which are the most vulnerable to future projected changes. The paper then focuses on the current coping strategies for climate variability by the chronically poor and highlights some of the barriers to and opportunities for successful adaptation.

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This paper analyzes the direct evidence of climate change in Bolivia during the past 60 years, and estimates how these changes have affected life expectancy and consumption levels for each of the 311 municipalities in Bolivia. Contrary to the predictions of most general circulation models, the evidence shows a consistent cooling trend of about 0.2°C per decade over all highland areas, slight and scattered evidence of warming in the lowlands, and no systematic changes in precipitation.

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Although there is not a mono-causal relation between climate change, disasters, displacement and migration, the existence of a clear link between the phenomena is increasingly recognized. This paper presents some initial empirical findings regarding the links between climate change, disasters, displacement and migration, as well as protection challenges and responses in this context, focusing on two African countries: Somalia and Burundi.

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