The Asian Development Bank, in partnership with Japan, is working to establish a new multi-donor trust fund designed to strengthen disaster risk financing across the Pacific.

The initiative aims to build resilience in Pacific developing member countries through targeted investments that improve regional coordination, enhance data and analytics capacity, align and expand disaster risk finance products, and promote affordability, diversification, and innovative financial solutions.

Speaking at the DRM Ministers meeting in Palau, ADB’s Director for Disaster Risk Management, Samantha Cook, said the fund is being shaped to ensure it reflects the unique realities of the Pacific.

She stated rather than a top-down model, the trust fund will be developed collaboratively, guided by each country’s national circumstances, priorities, and experiences.

Samantha is 1st from right.

To achieve this, Cooks said ADB is encouraging Pacific governments to define what effective disaster finance solutions would look like for their specific needs.

In recent weeks, ADB officials have held consultations with Pacific governments to better understand existing challenges and opportunities for improving access to disaster risk finance.

She said disasters continue to impose heavy economic burdens across the region, with some countries experiencing single events that cause losses equivalent to 30 to 60 percent of national GDP.

Such events lead to widespread damage to homes and infrastructure, disrupt livelihoods, and place extreme pressure on government budgets for essential services.

To help address these impacts, Cooks stated the ADB has developed a Disaster Risk Management Action Plan that commits to reducing disaster risks, strengthening preparedness, and ensuring rapid and predictable access to financing when crises occur.

As part of its broader support, ADB is also enhancing financial instruments that help countries maintain fiscal stability and protect development progress. One key measure is the Debt Deferral Clause previously known as the Climate Resilient Debt Clause which is currently being piloted in Pacific DMCs.

Cooks stressed this clause allows governments to defer debt repayments for up to two years following a severe disaster, providing critical liquidity during recovery.

Through these initiatives, ADB aims to reinforce the Pacific’s capacity to manage disaster risks and maintain financial stability in the face of increasingly frequent and severe natural hazards.

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