Instrument Description

Immediate redirection of funds for non-priority budget categories to emergency response.

Concessionality

Liquidity instruments are typically concessional, as they are intended to offer immediate assistance to those actors directly impacted by a climate crisis who likely have limited resources. Most facilities are direct transfers of funds to the affected party (government, business, individual). Some may be lines of credit, though repayment terms are likely to be limited to return of capital, or very favorable (below market) interest rates.