How the International Federation of the Red Cross is Using Innovative Financing to Fund Disaster Response and Preparedness

Global Dispatches -- World News That Matters

If you are a regular listener to the podcast and reader of our associated Global Dispatches newsletter, you know that I believe one of the most important issues in the world today is the growing gap between humanitarian needs and the funding available to meet those needs. Climate change and conflicts are causing a surge in the number of people around the world who require a modicum of humanitarian aid to survive. Yet, funding has not kept pace. Far from it. The gap is large and growing.

In response to this pressure, one of the largest and oldest international humanitarian organizations, the International Federation of the Red Cross and Red Crescent, is trying something new. While they still rely on traditional donors, mostly wealthier Western countries, they are also experimenting with innovative financing schemes. This includes using insurance in novel ways and exploring how to issue bonds or sell carbon credits to fund their humanitarian work.

Joining me to discuss how the IFRC is approaching these complex financial instruments is Nena Stoiljkovic, IFRC's Under Secretary General for Global Relations and Humanitarian Diplomacy. We kick off by discussing why climate change is driving up the costs of humanitarian response and the IFRC's new program to support climate-resilient communities before diving into a longer conversation about the novel ways in which the IFRC plans to finance that, along with its regular disaster response.