Financially Prepared - The Case for Pre-positioned Finance in European Union Member States and Countries under EU Civil Protection Mechanism

Financially Prepared:The Case for Pre-positioned FinancePublic Disclosure Authorized in European Union Member States and Countriesunder EU Civil Protection Mechanism © 2024 The World Bank1818 H Street NW, Washington, DC 20433www.worldbank.org Disclaimer This document is the product of work performed by World Bank staff and consultants. The findings,interpretations, and conclusions expressed in this document do not necessarily reflect the views of theExecutive Directors of the World Bank or the governments they represent. The World Bank does not guaranteethe accuracy of the data included in this work. The boundaries, colors, denomination, and other informationshown in any map in this work do not imply any judgment on the part of The World Bank concerning the legalstatus of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constituteor be considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all ofwhich are specifically reserved. This publication was produced with the financial support of the European Union. Its contents do not necessarilyreflect the views of the European Union. Administration Agreement between the European Commission and the International Bank for Reconstructionand Development concerning the Part II Europe 2020 Programmatic Single-Donor Trust Fund (No. TF073835)(EC Contract No. ECHOSUB/IBRD/2022/876156). Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions of this work withoutpermission may be a violation of applicable laws. For permission to photocopy or reprint any part of this work,please send a request with the complete information to either The World Bank or European Commission. Please use the following wording when citing this report:World Bank and European Commission. 2024.Financially Prepared: The Case for Pre-positioned Finance. Translations If you create a translation of this work, please add the following disclaimer along with the attribution: Thistranslation is an adaptation of an original work by The World Bank and should not be considered an officialWorld Bank translation. The World Bank shall not be liable for any content or error in this translation. Adaptation If you create an adaptation of this work, please add the following disclaimer along with the attribution:This is an adaptation of an original work by The World Bank. Views and opinions expressed in the adaptation arethe sole responsibility of the authors of the adaptation and are not endorsed by The World Bank. ACKNOWLEDGMENTS This report was developed as part of the technical assistance project ‘Phase 2 - Economic Analysis ofPrevention and Preparedness in European Union Member States and Countries under EU Civil ProtectionMechanism’, coordinated by the Directorate-General for European Civil Protection and Humanitarian AidOperations (DG ECHO) and other European Commission (EC) stakeholders. The technical assistance is fundedthrough the UCPM Multi-Annual Work Programme 2021–2024. This report was produced under Component3: Bringing National and Regional Finance to Scale. This report was prepared under the guidance and supervision of Christoph Pusch (Practice Manager, Urban,Disaster Risk Management, Resilience, and Land, Europe and Central Asia), Marina Wes (Country Director forthe European Union Countries), and Sameh Wahba (Regional Director for Sustainable Development, Europeand Central Asia). It was developed under the leadership and coordination of Samantha Cook (Senior FinancialSector Specialist) and Zuzana Stanton-Geddes (Senior Disaster Risk Management Specialist), with expertinputs from Jo Kemp (Senior Public Financial Management Consultant), Daniel McGree (Senior ActuarialConsultant), Yiao Yu (Actuarial Consultant), and Nicolas Pondard (Senior Disaster Risk ManagementConsultant). The report content drew on data from European Forest Fire Information System (EFFIS), and modellingoutputs underEconomic Analysis of Prevention and Preparedness in European Union Member States andCountries under EU Civil Protection Mechanism - Phase 1developed by JBA Risk Management and theGlobal Earthquake Model. The report also benefitted from comments and guidance from Matija Laco (Senior Economist), Mary Boyer(Disaster Risk Management Specialist, GFDRR), and Tatiana Skalon (Financial Sector Specialist). The report drew on consultations with civil protection agencies, institutional actors, and experts for thecountry-specific case studies as well as inputs from World Bank staff. The team would like to express its gratitude for the cooperation and guidance of the representatives of the ECand all the stakeholders consulted during the report’s preparation. This includes the Directorates General forCivil Protection and Humanitarian Aid Operations (DG ECHO) for the overall coordination, Climate Action (DGCLIMA), Joint Research Centre (JRC), Economic and Financial Affairs (DG ECFIN), Re