Economics for Disaster Prevention and Preparedness (Economics for Disaster Prevention and Preparedness)

The Economics for Disaster Prevention and Preparedness project was developed by the European Commission’s Directorate-General for European Civil Protection and Humanitarian Aid Operations (DG ECHO) and the World Bank and financed under the Union Civil Protection Mechanism (UCPM) Annual Work Program 2020. The aim of the project was to provide evidence to guide policy-makers and practitioners to make smart investments which can strengthen disaster and climate resilience in a way that delivers social, economic and environmental benefits.

The reports developed within the framework of this project highlight the importance of enhancing prevention, preparedness, and emergency response, which helps to reduce disaster and climate risks for people, improve sustainability, and enhance the welfare of European countries.

In particular, three reports were produced: 

- Investment in Disaster Risk Management in Europe Makes Economic Sense: this report analyses more than 70 cases studies showing that the benefits of investing in early warning systems, green and resilient infrastructure generally outweigh the costs. When developing investments with a multi-hazard approach, these benefits become even larger.

- Financial Risk and Opportunities to Build Resilience in Europe: this report assesses macro-fiscal impacts of earthquakes and floods in the EU Member States (MS), analyses the financial instruments in place to manage this risk and identifies any associated funding gaps. It highlights that access to pre-arranged funding can reduce impacts of disasters on people, economies, and governments budgets

- Understanding the Needs of Civil Protection Agencies and Opportunities for Scaling up Disaster Risk Management Investments: the objective of this report is to summarize insights and provide recommendations related to the challenges and opportunities for civil protection (CP) agencies to leverage investments for disaster prevention and preparedness. This report draws on the findings of stakeholder consultations and desk review related to fourteen countries with diverse disaster risk management (DRM) systems, financial mechanisms, institutional capacity, and exposure to disasters.

Moreover, the project developed infographics as well as online training sessions: 

• Online Training Session 1 - Modelling disaster risks in Europe
• Online Training Session 2 - Financial risk and opportunities to build resilience
• Online Training Session 3 - Cost-benefit analysis of investments in disaster prevention and preparedness