PASIG CITY, 28 August 2025— The Philippine government is taking steps to strengthen the financial protection of Filipino communities from climate- and disaster-related risks through climate and disaster risk finance and insurance (CDRFI). On August 13, the Department of Finance (DOF) convened a national dialogue to inform CDRFI priorities, including those that can be supported by the Global Shield against Climate Risks. 

A joint initiative of the Vulnerable Twenty (V20) Group of Finance Ministers and the G7 (Group of Seven), the Global Shield against Climate Risks aims to strengthen the financial protection and resilience of climate-vulnerable countries and communities. It also seeks to enable national governments to make informed decisions on risk financing solutions, mobilizing additional funding and facilitating innovative solutions through an In-Country Process (ICP) that involves stakeholders actively engaged in CDRFI. 

The two-day national workshop informed the Philippines’ request for CDRFI support to the Global Shield. Approximately 100 participants –– who joined in-person and virtually –– from national government agencies, the private sector, civil society organizations, academia, and bilateral and multilateral development partners to discuss ways to strengthen the country’s pre-arranged finance systems against the climate risks and impacts. 

“The Philippines has recently been confronted with this harsh reality: a southwest monsoon and tropical cyclones costing over PHP10.5 billion in damages to schools, roads, bridges, housing, and all key infrastructure, and PHP2.2 billion in agriculture alone. Therefore, it is our mission to make more significant progress in managing the risks and costs of disasters while protecting lives,” said DOF Undersecretary Maria Luwalhati C. Dorotan Tiuseco in her opening remarks during the national workshop of the Global Shield against Climate Risks yesterday. 

“When the V20 and G7 launched the Global Shield at COP27 in 2022, the aim was clear: arrange finance in advance so that funds reach vulnerable people and communities immediately after disasters strike,” said Sara Jane Ahmed in her keynote message, representing the V20 and Climate Vulnerable Forum (CVF). “Quick access is essential not only to address loss and damage, but to shorten recovery time and limit losses from compounding.” 

“Local government units—provinces, cities, municipalities, and barangays—shoulder substantial responsibilities as a result of devolution— including public service delivery, disaster preparedness, health, agriculture, environmental management, and infrastructure development. Strengthening climate and disaster risk financing and insurance is essential for them to succeed in these responsibilities by protecting their communities, infrastructure and enterprises,” Ahmed added. She further acknowledged that the Philippines is already showing leadership in deploying solutions at the national and subnational levels with support from the private sector.

German Ambassador to the Philippines Dr. Andreas Michale Pfaffernoschke also reiterated that, “By leveraging existing risk financing and management plans and accelerating access to pre-arranged financing, we can enable fast and effective assistance to affected communities while reducing the overall fiscal impacts of disasters.”

The Philippines is among the first recipients of the Global Shield’s support packages –– known as  Pathfinder Countries –– along with Bangladesh, Costa Rica, Fiji, Ghana, Pakistan, and Senegal. The DOF’s Climate Finance Policy Group leads the in-country process, with support from coordinating partner Institute for Climate and Sustainable Cities (ICSC).

The [forthcoming] Philippines’ Climate Finance Strategy identifies six priorities needed to ensure an inclusive and resilient financial sector for the country, as presented by the DOF:

  • Accelerating the implementation of the country’s National Adaptation Plan (NAP), Nationally Determined Contribution Implementation Plan (NDCIP), and Sustainable Finance Roadmap (SFR);
  • Maximizing domestic budget allocation for climate action;
  • Strengthening stakeholder capacities for climate finance stewardship;
  • Advancing climate outcomes vis-a-vis Public-Private Partnerships;
  • Unlocking financing from international mechanisms; and
  • Increasing transparency and accountability in climate action.

ICSC presented the current CDRFI landscape in the Philippines and highlighted key challenges pertaining to enabling policy, limited availability and awareness on risk data and analytics tools and ensuring the availability, accessibility, and affordability of CDRFI mechanisms. 

“As we move to the next steps of the Global Shield’s In-Country Process, the insights and contributions we have through the national workshop will serve as both our foundation and our compass. They will ensure that our future actions are targeted, evidence-based, and informed,” said ICSC Executive Director Angelo Kairos dela Cruz.

CONTACT
Sanaf Marcelo, ICSC: media@icsc.ngo, +63 968 886 3466, +63 917 149 5649

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