The Association of South East Asian Nations (ASEAN) held the “ASEAN Sub-National Workshop on Disaster Risk Financing and Insurance in the Philippines” for the Luzon cluster in Naga City on April 25, 2017. The ASEAN Disaster Risk Financing and Insurance (DFRI) Programme was developed to increase the member state’s capacity in developing policies that provide a conducive environment for ex ante financing instruments and risk insurance. The DRFI seeks to assist the Philippines in crafting policies on disaster risk financing and insurance in line with the implementation of the ASEAN Roadmap on Disaster Risk Financing and Insurance.
During the workshop, breakout groups were asked to answer guide questions about the adequacy, issues and challenges, operational barriers, and suggested strategies in addressing climate and disaster financing and insurance. Most agreed that there are a lot of channels for climate and disaster financing but the majority of local government are unaware of financing options or lack access to these. Ease of access to these funds should be addressed in the formulation of the national DFRI, ensuring that national governments are capable of supporting long-term rehabilitation and reconstruction needs, effectively enabling local governments to provide immediate assistance in times of disaster.
National Expert for Policy Development Dennis Dela Torre discussed the goals, significance, and priority areas of the ASEAN DRFI Program (Photo from the Facebook page of Naga Smiles to the World).
According to Dennis Dela Torre, National Expert for Policy Development, the results of these consultations will contribute to sound fiscal health at the national government level, develop sustainable financing mechanisms for local government units; and reduce the impact on the poorest and most vulnerable sectors.
The Philippines is among the first few countries to craft landmark legislation on disaster risk reduction (DRR) and climate change, namely; the Climate Change Act of 2009 (RA 7929) and the Philippine Disaster Risk Reduction and Management Act of 2010 (RA 10121). Both laws provide for climate and disaster financing, at the national and local levels to ensure that funding is allotted for risk reduction programs. RA 7929 specifically mandates the Department of Finance (DOF) to coordinate with the Climate Change Commission (CCC) on matters concerning fiscal policies related to climate change and monitor and report measures involving climate finance. In line with this, the sub-national consultations done in Luzon, Visayas, and Mindanao, as well as the national discussions and technical briefings, will be used as a kick-start to the development of a national DRFI strategy for the Philippines led by the DOF.
The Philippine Information Agency also reported the highlights of this event.
