Climate Insurance Linked Resilient Infrastructure Financing (CILRIF)

CILRIF is a financial innovation designed to provide cities with long-term climate insurance and access to capital for resilience building. The mechanism uses a results-based pricing structure where insurance premiums decrease as cities implement adaptation measures, thereby reducing overall financing costs and managing climate risk. The initiative targets specific cities in South Africa, the Philippines, and Sierra Leone, focusing on risks such as riverine floods and extreme heat.

• CILRIF provides municipal climate insurance for terms exceeding 10 years with pre-arranged premiums, contingent on a city's commitment to invest in climate resiliency.
• The mechanism uses a results-based pricing structure where insurance premiums decrease as a city implements the adaptation measures specified in its policy, which in turn is expected to lower the city's overall financing costs and facilitate access to lower-cost capital.
• The CILRIF operational model consists of a centralized 'CILRIF Private Facility' that manages two components: a climate risk insurance facility and an infrastructure finance facility, while carrying the residual risk of both on its balance sheet.
• The program has identified specific initial target cities: Durban (South Africa) and Makati (the Philippines) for riverine floods, and Freetown (Sierra Leone) for extreme heat.
• The CILRIF investment opportunities include a USD 100M grant for technical assistance and subsidy, a USD 800M commercial investment tranche, and a USD 200M 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} }