Droughts are a significant global challenge, with their frequency and severity increasing by a third since 2000. Vulnerable countries, particularly low- and lower-middle-income nations, face heightened risks to their economies, ecosystems, and communities. The economic losses from droughts are projected to rise by at least 35% by 2035. The lack of sufficient financial resources exacerbates these risks, as only 6% of current drought resilience funding comes from the private sector. The new tools introduced at COP17, including the Drought Resilience Index and the Drought Resilience Investment Facility, aim to mitigate these risks by improving preparedness, mobilising private and public investments, and fostering international collaboration.