The number of internally displaced people (IDPs) around the world reached 71.1 million as of the end of 2022, an increase of 20 per cent from the previous year, according to this Internal Displacement Monitoring Centre’s flagship annual report.

This publication aims to bridge the gap between climate and disasters, in the face of the uncertainties that climate change poses to water managers and policymakers. Composed of a compilation of worldwide case studies, it provides examples of innovative water management and climate risk assessment approaches.

As countries in Asia face growing disaster and climate risks, governments are coming under increased pressure to strengthen disaster preparedness and response capacity.

The African Union Commission has devised a continental plan to achieve the goals and targets of the Sendai Framework for Disaster Risk Reduction 2015–2030. Yet progress has been variable and risk-creation – particularly in urban areas – continues to set many states and societies on pathways of increased disaster risk.

In 2022, the Emergency Event Database EM-DAT recorded 387 natural hazards and disasters worldwide, resulting in the loss of 30,704 lives and affecting 185 million individuals. Economic losses totaled around US$ 223.8 billion. Heat waves caused over 16,000 excess deaths in Europe, while droughts affected 88.9 million people in Africa.

Since late 2020, much of the Horn of Africa region has been experiencing severe drought . As of December 2022, many areas are now within their fifth consecutive failed rainy season and a sixth failed rainy season is predicted for 2023.

The Horn of Africa continues to face its worst drought in 40 years, and this right after the region faced the worst desert locust upsurge in 70 years.

Flood exposure is likely to increase in the future as a direct consequence of more frequent and more intense flooding and the growth of populations and economic assets in flood-prone areas. Low-income households, which are more likely to be located in high-risk zones, will be particularly affected.

Climate change and environmental risks are increasingly recognized as a concern for financial authorities, yet empirical evidence of the damage for bank balance sheets is relatively scant.

This report highlights the urgent need to rewire the current financial systems towards (a) de-risking current investments (b) integrating risk reduction into credit allocation and (c) redirecting financial flows towards risk reduction.