INTERNATIONAL CLIMATE INITIATIVE OF THE GERMAN GOVERNMENT

Finance mechanisms to boost ecosystem protection against climate change

Context

Extreme weather events such as tropical cyclones are costing the Philippines $1.6 billion every year, making the country one of the most vulnerable to climate change. The conservation of ecosystems such as forests, mangroves and coral reefs are a cost-effective way to realise adaptation.

In order to scale up ecosystem-based adaptation (EBA) to climate change, leading industry and finance sectors must begin to incorporate ecosystem protection values into their risk management and investment plans.


Our work

Earth Security Group has been working in the Philippines to create new private and finance sector mechanisms to accelerate ecosystem-based adaptation. ESG works with the support of the International Climate Initiative of Germany's Federal Ministry for the Environment, Nature Conservation, Buildings and Nuclear Safety (BMU).

As part of the project, ESG has built a network of leading companies, banks, investors, and business platforms and is advancing a series of innovative partnership models that support EBA implementation in alignment with the country’s National Adaptation Plan.

An interim results brief outlines the work being pursued with strategic partners:

  • Integrating the protection value of ecosystems into mainstream insurance with the insurance association;
  • Including EBA in banking policies with the participation of local banking networks;
  • Innovative EBA financing mechanisms to finance ecosystem regeneration with local governments.

Key activities and milestones in this project have included:

  • solutions brief that has guided the design of working groups and workshops from the outset, outlining key opportunities for innovation in insurance, banking, conservation finance and entrepreneurship.
  • A series of business and finance workshops bringing together over 60 leaders from the private sector to co-develop the proposals and integrate them into their product and strategic development processes [Watch video below]

“Integrating ecosystem-based adaption in the insurance industry is a way to enhance the sector’s positive impact while expanding the portfolio of products in the market. Earth Security Group’s project has been instrumental in creating this awareness, which in our sector is very low, and bring together players that can contribute to innovative solutions.”

Mr. Michael F. Rellosa Executive Director

Philippines Insurers and Reinsurers Association (PIRA)