Tuvalu First Climate and Disaster Resilience Development Policy Financing with a Catastrophe Deferred Drawdown Option

The development objective of the First Climate and Disaster Resilience Development Policy Financing with a Catastrophe Deferred Drawdown Option for Tuvalu aims to support the Government of Tuvalu to: (i) promote climate and disaster resilient fiscal policy and trade facilitation, and (ii) improve the institutional and regulatory framework for climate and disaster resilient infrastructure. As such, pillar 1 supports fiscal risk reporting and subsequent provisioning in the event of natural disasters, and the roll out of climate budget tagging and its integration in Tuvalu’s public financial management (PFM) system. The pillar also supports expedited clearance of critical goods trade during emergencies and natural disasters. Pillar 2 continues to support institutional policy reforms for increased resilience of the built environment and infrastructure, stronger emergency preparedness, response, and post-disaster recovery.