Life cycle of capital flow – illustrative TABLE 2 Phase Prevention: de-risk and designMitigation preparation: build, capitalize and deliverMitigation operations: liquidity and suppression responseReactive adaptation: rebuild and recycle Purpose Turn ideas into investable programmes and align investors Set standards and delivery railsBuild the assets that keep fires small and costs downEnsure speed and cash flow when events occurRebuild to standard, repair watersheds and refuel the next prevention cycle Instruments Planning grants, first-loss/ guarantees, technical assistance, results-based grants (simple milestones)Blended revolving funds, resilience-linked bonds/ loans, concessional lines, pooled community finance, optional parametric bridge for surge liquidityParametric covers (sovereign/sub-sovereign/ corporate), working capital lines, rapid vendor pay rails, mutual aid cost-sharePremium discounts/credit schedules, savings-share tranches, outcome-based grants, follow-on bond lines for next cohorts, build- back-better endorsements, enhanced insurance coverage and utility cost- recovery mechanisms Common payers (mature markets)State/federal grants, utilities (planning budgets), property owners, development finance institutions (DFIs)/ multilateral development banks (MDBs), sovereign funds/pools, climate fundsUtilities, large corporates, municipalities/states, HOAs/developers, insurers, impact/pension capital, property owners, philanthropy for first-lossInsurers (parametric), utilities/public agencies, pooled buyersInsurers (discounts/ credits), public-budget savings, HOA/municipal dues, revolving reflows Common payers (emerging and under-insured markets)DFIs/MDBs, sovereign funds/pools, climate funds, philanthropyDFIs/sovereigns (first-loss guarantees), climate funds, line ministriesSovereign risk pools (e.g. African Risk Capacity, Caribbean and Central America Parametric Insurance Facility), ministries, DFI facilitiesMinistries/sovereign funds, DFIs/climate funds (results-based), community co-pays (where viable) Use of funds Programme design, baselines and targeting, community and buyer aggregation, procurement playbooks, governance and data-sharing guardrails aligned to FAIR/CARE* principles, permittingLand management, home-hardening cohorts, detection and early- warning systems, enabling works (e.g. access and water points), shared data commons to coordinate implementation, MRVPre-positioned crews and equipment, seasonal treatments and inspections, rapid containment, stabilization and clean-upRebuild-to-standard/ code, watershed repair, operations and maintenance, next-year treatment cohorts to prevent backsliding Risk/return profileHighest programme/ design risk, patient capitalMedium execution/ product risk, blended returnsEvent-driven, rapid liquidity, exposure concentrated around fire seasons and trigger performancePerformance-based, recycling mechanism, multi-year programmes *FAIR = findable, accessible, interoperable, reusable; CARE = collective benefit, authority to control, responsibility, ethics.

From Wildfire Risk to Resilience The Investment Case for Action 2026