Workshop to advance DRR financing brings together government, financial institutions and development partners in Armenia
DRR financing workshop in Armenia gathered over 40 participants from government ministries, financial institutions, the private sector, and development partners to discuss financing strategies, tools, policies, and collaboration to enhance resilience against natural hazards and climate change impacts.
Armenia’s exposure to natural hazards—earthquakes, floods, landslides, and droughts—poses significant risks to its people and economic stability. Without effective disaster risk management and financing, these threats jeopardize the country’s development progress and long-term resilience. The economic toll of disasters is substantial. For instance, devastating floods in Lori and Tavush this May affected over 40,000 people, claimed lives, and caused severe infrastructure damage. A Post-Disaster Needs Assessment (PDNA) estimated damages at $49.5 million, with recovery needs exceeding $117 million.
To address these challenges, a USAID-funded workshop on “Building a Comprehensive Approach to Disaster Risk Reduction (DRR) Financing” was held on 3 December, organized by UNDRR in collaboration with UNDP. The event gathered over 40 stakeholders, including representatives from Armenia’s Ministry of Finance, Ministry of Economy, Ministry of Internal Affairs, Ministry of Foreign Affairs, Central Bank, Stock Exchange, commercial banks, private sector, and international organizations such as the Asian Development Bank (ADB), International Federation of the Red Cross, GIZ and UN agencies. The workshop built on a preparatory webinar held on 18 November and focused on fostering dialogue and next steps around tools, policies, and financing mechanisms to enhance Armenia’s resilience to disaster risks and the growing impacts of climate change.
As part of UNDRR’s ongoing project to develop national DRR financing frameworks, the workshop introduced participants to UNDRR’s comprehensive 5-step methodology for creating tailored strategies for financing DRR priorities. It aimed to raise awareness about the economic implications of disaster risks, identify financing gaps, and explore opportunities for better aligning public, private, and international resources with Armenia’s DRR priorities.
The event was inaugurated by Ms. Francoise Jacob, UN Resident Coordinator in Armenia, and Ms. Armine Hayrapetyan, Acting Rector of the Crisis Management State Academy and National Sendai Framework Focal Point for Armenia. Both emphasized the importance of breaking siloes and fostering collaboration between government, private sector actors, and international development partners to create a unified approach to disaster resilience.
During the workshop, stakeholders reviewed Armenia’s DRR investment needs and shared insights on innovative financing solutions. UNDP presented key findings from the PDNA, outlining priority actions and funding requirements. The Central Bank of Armenia showcased its Environmental, Social, and Governance (ESG) initiatives and resilience priorities, while the Asian Development Bank highlighted its Seismic Safety Enhancement Project, including on how seismic risk assessments support effective risk financing strategies. Phoenix CRetro presented sovereign parametric catastrophe bonds as a potential mechanism, and UNDRR shared further tools designed to build the resilience of Small and Medium Enterprises (SMEs).
The workshop laid the foundation for next steps in developing innovative financing instruments and policies to drive Armenia’s disaster preparedness and resilience, in line with the government’s priorities.