The Inter-American Development Bank (IDB) has released a new report that details its suite of innovative Climate and Disaster Risk Finance (CDRF) products and services for borrowing member countries to strengthen resilience and fiscal sustainability.

The IDB follows a strategic approach that aims to help Latin America and the Caribbean (LAC) countries build financial resilience to climate and disaster shocks, and to strike the right balance between reducing risks, transferring them, and managing the residual risks through financial instruments. According to the authors, an effective financial strategy should include a mix of financial instruments tailored to the country’s climate and disaster risk profile and financing needs. Some of the financial instruments described in the document include the Contingent Credit Facility (CCF), the Climate Resilient Debt Clause (CRDC), risk transfer products like catastrophic protection.