Financially Prepared -The Case for Pre-positioned Finance

This report aims to inform discussions on the development of effective national and regional risk financing mechanisms by identifying funding gaps
for wildfire and drought response. The identification of funding gaps can be used to inform a risk-layering approach, which combines different financial
instruments to provide predictable finance when needed. This also includes the identification of additional regional funding to complement national finances.

Overall, this report reinforces the findings from Phase 1 which highlight that too much of the disaster and climate risk is managed through risk retention
(for example, budgetary instruments at the EU and EU MS levels) and more should be done to incentivise transfer risk to the private sector at both the EU and
the EU MS levels.