Forecast-based Financing

Forecast-based Financing (FbF) is a proactive approach where financial resources are allocated in advance based on weather or climate forecasts. When a forecast predicts an upcoming disaster, such as a flood or drought, funds are swiftly released to implement preparedness and early response measures. This method aims to reduce the impact of hazards by acting early, helping communities to minimize damage, protect livelihoods, and recover more effectively. Essentially, FbF uses predictive information to trigger timely aid, making disaster response more efficient and reducing losses.