Climate Insurance Linked Resilient Infrastructure Financing (CILRIF)

The Climate Insurance Linked Resilient Infrastructure Financing (CILRIF) is a financial innovation designed to provide municipalities with long-term climate insurance and capital for resilient infrastructure. By linking insurance premiums to the implementation of adaptation measures, CILRIF incentivizes cities to invest in resiliency to reduce their long-term insurance costs and overall financing expenses.

• CILRIF provides long-term municipal climate insurance (exceeding 10 years) with pre-arranged premiums that are contingent upon a city's commitment to invest in climate resiliency. The model uses a results-based pricing structure where insurance premiums decrease as a city implements adaptation measures to manage risk.
• The program aims to address fiscal constraints and liquidity challenges in cities, particularly in emerging economies, which often hinder pre-disaster resiliency and post-disaster recovery. Access to CILRIF insurance is expected to lower a city's financing costs and facilitate access to lower-cost capital for development.
• CILRIF's operational design consists of a centralized financial structure called the CILRIF Private Facility, which manages two separate components: a climate risk insurance facility and an infrastructure finance facility. This entity handles the pricing for both the buying and selling of climate risk and carries the residual risk from both facilities on its balance sheet.
• The initial target cities for the program are Durban in South Africa and Makati in the Philippines, with a focus on riverine floods. Freetown in Sierra Leone is identified as the next near-term target city, focusing on extreme heat.
• The CILRIF investment opportunities include a USD 100 million grant for technical assistance and subsidy, a USD 800 million commercial investment tranche, and a USD 200 million concessional investment tranche within the Finance Facility.

APA

Climate Policy Initiative (2022). Climate Insurance Linked Resilient Infrastructure Financing (CILRIF). https://www.climatepolicyinitiative.org/wp-content/uploads/2022/10/CILRIF-overview.pdf

Chicago

Climate Policy Initiative. Climate Insurance Linked Resilient Infrastructure Financing (CILRIF). 2022. https://www.climatepolicyinitiative.org/wp-content/uploads/2022/10/CILRIF-overview.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Climate Insurance Linked Resilient Infrastructure Financing (CILRIF) |date=2022 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2022/10/CILRIF-overview.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2022climate, author = {{Climate Policy Initiative}}, title = {{Climate Insurance Linked Resilient Infrastructure Financing (CILRIF)}}, institution = {Climate Policy Initiative}, year = {2022}, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2022/10/CILRIF-overview.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }