Using EU financial instruments

European Commission

2

Innovative solutions to the

financing of disaster prevention

1.Use of EU funding

2.Disaster Risk Insurance

3.Risk Transfer Solutions

3

1. Use of EU funding

•Study on EU financial instruments

•Analysis of uptake

•Possible Commission actions

4

Study on EU financing

instruments

•Critical analysis of instruments

-desk analysis, questionnaires, interviews

•Inventory of instruments

•Catalogue of measures

5

Prevention measures

•Risk identification and impact assessment

•Knowledge development

•Awareness raising

•Early warning

•Governance

6

Overview of draft Catalogue

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de

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up

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GO

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NP

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ve

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ro

ug

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up

po

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GO

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8

Overview per instrument Lo

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Examples

Hyd

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od

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ba

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sts

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oss

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nt

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osu

re a

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ng

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nct

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ge

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e in

ten

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od

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od

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ast

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rest

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zard

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term

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r m

ap

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g

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k i

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am

ple

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od

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zard

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ba

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ast

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rest

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zard

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term

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am

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pre

ve

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asu

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10

WISE-RTD

11

FLOODsite

12

Main financing

instruments at EU

level

•Cohesion Policy funding

(ERDF, ESF, CF)

•Civil Protection (CPFI)

•Pre-Accession (IPA) and

Neighbourhood Policy (ENPI)

•Rural Development (EARDF)

•Environment (Life+)

•Research & Development (FP7)

13

•Civil Protection responders in Member States

•Enhance preparedness of the public in case of

emergencies in the Member States

•Information sharing of project results

Preparedness–cooperation projects

�Lo

ng

-te

rm p

reve

nti

on

an

d m

itig

ati

on

by i

mp

rovin

g r

isk

ass

ess

me

nt

an

d m

an

ag

em

en

t

�P

rom

ote

're

spo

nse

-pre

pa

red

ne

ss-p

reve

nti

on

-

rem

ed

iati

on

' ch

ain

Prevention –cooperation projects

�2007: 6 projects

�€1.5 million

�2009: 12 projects

�€4 million

14

Co

mm

un

ity

Me

cha

nis

m

Ind

uct

ion

Te

chn

ica

l E

xpe

rts

Me

dia

an

d

Se

curi

ty

Aw

are

ne

ss

Sta

ff

Ma

na

ge

me

nt

Hig

h-l

ev

el

Co

-

ord

ina

tio

n

Inte

rna

tio

na

l

Co

ord

ina

tio

n

Ass

ess

me

nt

Mis

sio

n

Op

era

tio

na

l

Ma

na

ge

me

nt

Mo

du

les

Ba

sic

�Some 1.500

experts already

trained

�Sub-contracted

Training centres

in various

locations

Experts trained in EU

civil protection can be

deployed

Preparedness –training courses

Exc

ha

ng

e o

f

exp

ert

s

pro

gra

mm

e

15

Eurosot2005, Italy

Escex2004, Finland

What kind of exercises?

30 exercises financed since

2002Large-scale pan-European

simulation exercises

2009 �

€1.65 million

Aims

Accelerate response decision-

making procedures

Enhance interoperability

Identify further training needs

Preparedness –Simulation exercises

EULUX 2007, Luxembourg

EUDANEX 2006,

Denmark/Sweden

16

Addressing Natural Hazards:

Addressing Natural Hazards:

European Framework Programmes

European Framework Programmes

••F

P5

FP

5 ––

Overa

ll s

up

po

rt (

1998

Overa

ll s

up

po

rt (

1998

-- 20

02)

20

02): 48 Mio Euro

••F

P6

FP

6 ––

Overa

ll s

up

po

rt (

2002

Overa

ll s

up

po

rt (

2002

-- 20

06)

20

06): 58,2 Mio

•FP7-(2007)

: 13 Mio

•FP7-(2008) : 14 Mio

•FP7-(2009)

: 13 Mio

•FP7-(2010)

: 11.5 Mio

•FP7-(2011)

: 18 Mio

17

Main core areas of

Main core areas of ««Natural

Natural

Hazards

Hazards»»

in the Work programme

in the Work programme

•H

aza

rd a

ss

es

sm

en

t, t

rig

ge

rin

g f

ac

tors

an

d

fore

ca

sti

ng

•V

uln

era

bil

ity a

ss

es

sm

en

t a

nd

so

cie

tal

imp

ac

ts

•R

isk

as

se

ss

me

nt

an

d m

an

ag

em

en

t

•M

ult

i-ri

sk

a

ss

es

sm

en

t a

nd

mit

iga

tio

n

str

ate

gie

s

18

Su

b A

cti

vit

y

Natu

ral H

azard

s

Main areas covered by the work programme calls for proposals

Hazard assessment, triggering factors and forecasting:

•2007:

-European storm risk (MICORE)

•2008:

-Methodology and tools for earthquake hazards in Europe

(SHARE)

•2009:

-Forest fires in the context of climate and social changes (FUME)

•2010:

-no call

•2011:

-Towards real-time earthquake risk reduction

Vulnerability assessment and Societal impacts

•2007:

-Frame for better vulnerability assessment (MOVE; ENSURE)

-Investigating Europe's risks from drought (XEROCHORE)

•2008:

-Social perception, behaviour and response to

risks (CapHazNet)

•2009:

-Costs of natural hazards (ConHaz)

-Vulnerability of buildings, lifelines related to

earthquakes (Syner-G)

•2010:

-Building a culture of risk preventionin Europe (in negotiation)

•2011:

-Building societal resilience to disasters in Europe

-Vulnerability and increased drought in Europe

19

Su

b A

cti

vit

y -

Natu

ral H

azard

s

Main areas covered by the work programme

calls for proposals

Risks assessment and management

•2007: -Assessment and management of volcanic threat (MIAVITA)

-Avalanche forecasting and risk mapping

•2008: -Prediction of triggering and risk assessment for landslides (SAFELAND)

-Risk management for flash floods and debris flow (IMPRINTS)

•2009: -Risk prevention and management of urban floods (CORFU)

•2010:

-Early warning and drought risks in Africa

(in

neg

oti

ati

on

)

•2011: -Risk prevention and management before volcanic eruptions

Multi risk evaluation and mitigation

•2007: -European multi-hazard database

•2008: -Coordinated research strategy between European and national levels

•2009: -no open call

•2010: -New methods for multi-hazard and multi-risk assessments

(in

neg

oti

ati

on

)

-Social science, natural hazards and decision making process

•2011: -Capacity building in natural hazards risks reduction

20

Cohesion Policy -Programming

•2007-2013: planned co-financing of €6.5

billion on ‘risk prevention’

–Focus on ‘prevention/preparedness’

–Large scope of interventions eligible

–Priority under territorial cooperation (Interreg)

•MS select & implement projects (principle

of shared management)

•20 MS planned use of Cohesion Policy

funding on ‘risk prevention’

21

2007-13 allocation to risk

prevention & uptake by end 2009

0,0

200,0

400,0

600,0

800,0

1000,0

1200,0

1400,0

HU

PL

ES

PT

GR

DE

CB

IT

RO

CZ

FR

SK

EE

SI

MT

BG

LV

FI

AT

NL

UKEU

27

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

40,0%

45,0%

50,0%

Decided allocation (m€)

% Project selected

22

Cohesion Policy -Uptake

•Uptake of Cohesion Policy funding for risk

prevention by 09/2010 (‘Strategic report

2010’):

Currently rate of uptake at about 20%

•Large amounts of funds still available for

investments in natural disaster prevention

23

Cohesion Policy -Issues

•Awareness among stakeholders /

authorities of availability of Cohesion

Policy for risk prevention

•Capacities of responsible authorities to

design/deliver such projects

•Economic crises: access to national

funding part

24

ELBE-LABE: adaptation to flood risk in the

Elbe basin

•InterregIV Project

•€3.3 M ERDF of €4.2 M

•20 partners from 4 countries

•09/2008 until 02/2012

•Continuation of 03-06 Interreg

project ‘ELLA’:

–flood hazard maps + basic

action plan for future flood

mitigation

•Implementing actions to improve

methods & instruments of flood

risk management:

–standardization of methods

and instruments;

–awareness-raising;

–adaptation of land uses;

25

Further examples of implemented

projects (co-)financed by EU

funding

•Floods: elaboration of the national flood risk management strategy for

ROMANIA and application to three river basins (PHARE project, finalised in

2009)

•Forest fires: the SPREAD project relates to forest fire prevention and

mitigation, with application in Spain in particular (Joint Research Centre)

•Earthquakes and tsunami: NEAREST (Integrated Observation from Near

Shore sources of Tsunami), TRANSFER (Tsunami Risk and Strategiesfor

the European Region), SEAHELLARC (Seismic risk assessment and

mitigation scenarios in western Hellenic Arc), SAFER (Seismic Early

Warning for Europe)

•Oil spills: a three-year EU-funded POP&C project (Pollution Prevention and

Control –safe transportation of hazardous goods by tankers) with three

main objectives: to develop a methodology by which tanker ownerscan

calculate the spill risk posed by their ships; to assess and provide advice on

ways to reduce these risks; and to advise tanker crews on how tomitigate

pollution damage once a spill has occurred.

•Multi-risks: the FLAGSHIP Initiative in countries eligible for ENPI funding

26

Flo

od

pre

ven

tio

n o

n t

he T

isza r

iver

(Hu

ng

ary

)•Construction of 7 flood

reservoirs along the river in

2007-2013 (Operational

Programme ‘Environment’of

Hungary)

•Investment of €290 M by

Cohesion Policy out of €

400 M

•1 flood plain already co-

financed in 2000-2006

27

Ben

efi

cia

ries:

•Candidate Countries & Potential Candidate Countries CC/PCC:

Albania, Bosnia and Herzegovina, Croatia, the former Yugoslav

Republic of Macedonia, Montenegro, Serbia, as well as Kosovo under

UNSCR 1244/99, and Turkey.

Overa

ll o

bje

cti

ve:

Reducethe vulnerabilityof IPA Beneficiariesto naturaland man-made

disastersatlocal, national, and regionallevels

Ob

jecti

ves:

•Strengthening civil protection capacities of CC/PCC

•Preparing CC/PCC for participation in the CP Mechanism

Bu

dg

et:€4 million

Du

rati

on

:2 years (01/2011 –12/2012)

IPA Programme –

Instrument for Pre-accession Assistance

28

Tra

inin

g P

rog

ram

me

:

1)

basic training (6 day-long) ~ CMI

2)

operational management training (6 day-long) ~ OPM

3)

advanced training (5 day-long) ~ HLC

•272 participantsin total –34 experts / beneficiary

Ex

ch

an

ge

of

ex

pert

s:

•civil protection experts of the beneficiariesto gain and pass

knowledge from and to services of other beneficiaries or the

Mechanism Participating States

•minimum 5 days to up to 2 weeks

•80 experts in total –10 experts / beneficiary

Lot 1

Tra

inin

g p

rog

ram

me

&

ex

ch

an

ge

s o

f e

xp

ert

s

29

2 R

eg

ion

al e

xe

rcis

es

:

•2 different scenarios

•at least 3 full days & 1 night duration

•at least 120 participants: min 5 intervention teams x 20 staff +

equipment, observers, evaluators

•activation of the Mechanism

•deployment of Mechanism/MIC assessment and coordination

expert team

•involvement of the National Civil Protection Authorities of

beneficiary countries

Lot 2

Re

gio

na

l e

xe

rcis

es

&

Me

ch

an

ism

ex

erc

ise

s

30

Mech

an

ism

exerc

ises:

•1 team per beneficiary to play along in the

Mechanism exercises in 2011 and 2012

2011:

Lot 2

Re

gio

na

l e

xe

rcis

es

&

Me

ch

an

ism

ex

erc

ise

s

31

12

Wo

rksh

op

s o

n k

ey is

su

es

:

1.

Provision of assistance during disasters and host-nation support;

2.

Early warning systems (EWS);

3.

Development of '112' systems and centres;

4.

Sharing the best practices in the field of civil protection and

developing lessons-learned systems and culture;

5.

Instrument of Pre-accession Assistance (IPA) and accessing

national IPA programmes for civil protection projects; and

6.

The Community Civil Protection Mechanism.

Ta

rge

t g

rou

p: top-level managers, decision makers and senior staff

in the field of civil protection, key national contact point staff

Lot 3

Wo

rks

ho

ps

32

•S

tee

rin

g G

rou

pfor each Lot:

-to provide general directions on the Programme implementation

-1 representative from the national civil protection authoritiesof

each beneficiary

•A network of beneficiaries' N

ati

on

al

Co

rre

sp

on

de

nts

-the first contact point and permanent partners in the Programme

-National Training Coordinators, who nominate the experts

•R

ole

in

th

e e

xe

rcis

es

-N

ati

on

al

Civ

il P

rote

cti

on

Au

tho

rityof each beneficiary will be

deploying intervention teams and will p

ay a

lon

gwith the MIC

Ac

tiv

e i

nv

olv

em

en

t o

f th

e b

en

efi

cia

ry

co

un

trie

s n

ee

de

d:

33

PPRD East Programme

•One of the 6 Flagship initiatives under the Eastern

Partnership (Belarus, Armenia, Azerbaijan, Georgia,

Moldova and Ukraine)

•Programme launchedin December2009 in Gothenburg

•Programme willstartrunning early2011

•Target groups: civil protection and disastermanagement

authorities, researchinstitutions, civil society, private

sectorand the generalpublic

•Prevention, preparedness, mitigation, and response

•Results:

–Improved knowledge base

–Strengthened capacities at local, regional, and national level

–Wider information and awareness

34

PPRD East Programme-Specific activities

•Electronic Regional Risk atlas as a tool

facilitating cooperation

•Civil Protection CapacityBuilding

Programme

•Awareness-raisingcampaign

•Coordination via the PPRD East Steering

Committee

35

Disasterriskinsurance

•Prevention incentives to many actors

•Pre-event financing versus ex post action

•Premiums based on actual risks

•Insurance involved in entire risk

management cycle

36

•Through cooperation with policymakers

and other stakeholders, insurance can:

–Assist in enhanced land-use planning

–Development/ enforcement of building codes

–Risk assessment, modelling, mapping

–Awareness raising and education

37

3. Risk Transfer Solutions

•Innovative financial products to raise

capital on the world capital markets

•Objective: Lower costs of (re-)insurance

•Catastrophe bonds 2009 turnover €7 bn.

•Possible due to improved prediction tools

•EU context: Possibly useful for industry,

infrastructure, i.e. to foster primary market

38

Example: Mexico ILS 2009

•Insurance linked securities (ILS)

•By World Bank /IBRD

•Parametric insurance to

Mexico’s Fund for Natural

Disasters (FONDEN), for:

–Earthquake risk

–Pacific/ Atlantic hurricane risks

•Issuance US$290 million

39

Possible actions

•Publish Catalogue of Prevention Measures

•growth & regional policy highlighting risk prevention

•Additional tools that could be developed, e.g.:

–More assistance in project definition and preparation

–Clearer definition of the concept of “prevention”

–Definition of success indicators

–Specific funding expertise -prevention help desk

–Targeted funding meetings

•More support for dissemination of results of projects

•Mainstreaming of prevention into EU instruments

•Preventionfinancingin international fora

•Foster collaboration and knowledge transfer among MS

–good practice, technical assistance, seminars, workshops, …

–Furtherworkin the area of insuranceand risktransfersolutions