This note explores the opportunities and challenges that arise when applying results-based financing (RBF) approaches, in particular Output-Based Aid (OBA), to the sectors of disaster risk management and climate resilience. For the purposes of this discussion, climate resilience is considered within the framework of disaster risk management (DRM)1. The note was developed by the Global Partnership on Output-Based Aid (GPOBA) through its initiative on Climate Change. GPOBA is a World Bank-administered program with a mandate to fund, design, demonstrate, and document RBF approaches to improve the delivery of basic services to the poor and marginalized households in developing countries.
NOTE: The GPOBA draft working paper explores the opportunities and challenges associated with results-based financing (RBF) approaches in the sectors of disaster risk management (DRM) and climate resilience. Given the sharp rise of disaster losses in recent decades and the increasing threat of climate change, the demand for DRM and climate resilience is significant. The paper analyzes the use of two RBF instruments, the Program-for-Results (PforR) and Output-Based Aid, and their potential for application in operations focused on DRM and strengthening climate resilience.