ARC Ltd Integrated Annual Report 2023

49 Perhaps most crucially, the partnership provides the UNHCR an avenue to access climate financing. “With donor appetites shifting towards risk mitigation and insurance, this collaboration allows us to tap into those sources,” Terry says. Paving the way in Malawi The initial pilot project of this partnership is underway in Malawi, home to over 55 000 refugees, primarily from the Democratic Republic of Congo. This population faces significant climate-related risks, such as droughts. People living in camps, such as the one 40 minutes from the capital, Lilongwe, on which this project focuses, are particularly vulnerable to climate shocks. Most have minimal rights and economic opportunities, with few able to work or move freely. Droughts and floods can severely disrupt their access to food, water, and essential services, pushing many towards negative coping mechanisms like gender-based violence, child labour, prostitution, and taking children out of school, explains Terry. German development bank KfW has pledged to cover the Malawi project's premiums for two years. ARC Ltd. will monitor data on agricultural output, rainfall, and food prices to determine whether cash assistance payouts should be triggered to help refugees and host communities. Regional scaling The UNHCR- ARC Ltd. partnership is rooted in the realisation that traditional humanitarian assistance is insufficient for the cascading risks of climate change. “Our organisation was set up 75 years ago, and there is a certain amount not being fit for purpose that is becoming very glaring,” says Terry. “When you look at it through a climate change lens, the vulnerability is multiplied to a point where our capacity and business model are strained.” The cash assistance payouts triggered by the Replica programme provide immediate support, helping prevent crisis-driven negative coping measures. However, the UNHCR views this as a stop-gap while pursuing longerterm refugee resilience through complementary initiatives like climate-smart agriculture and hydroponics and promoting climate-resilient crops and farming practices. “We’re trying to find ways to build self-reliance, to build resilience, to help these people adapt to the reality of climate change,” says Terry. “In the meantime, vulnerability is being exacerbated, and we must find ways to address the issue.” Malawi is just the beginning. The partnership plans to rapidly expand to other high-risk countries in the region, such as Mozambique, Zimbabwe, Madagascar, the Democratic Republic of Congo, and Zambia – wherever UNHCR operations face threats from climate change. Together, ARC Ltd. and the UNHCR are paving the way for a new paradigm in protecting and empowering refugees in Africa amid accelerating climate threats. KEY FACTOR 2 TECHNICAL EXPERTISE IN AREAS LIKE RISK MODELLING AND CLIMATE DATA ANALYSIS PARTNER I NTERV I EW: UNHCR

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