DISASTER RISK REDUCTION FINANCING
Southeast Asia, which is liable to rising sea ranges, floods, heatwaves and droughts, faces challenges relating to financing local weather motion, observers mentioned on the SIEW summit .
“If you have a look at reactive financing, clearly there’s important financing occurring after (a catastrophe) has occurred,” mentioned Dr Ramesh Subramaniam, director common and sector group chief on the Asian Development Bank (ADB ).
“But the problem we face is that, when it comes to allocating fiscal sources, a sure a part of the finances to be ready to take care of disasters, has been very, very gradual,” he informed CNA.
“And in the event you have a look at the insurance coverage markets, I’d say it is virtually non-existent.”
Last month the lender authorized a brand new goal to dedicate 50% of its annual lending to local weather finance by 2030.
During the interview, Dr Subramaniam touched on the institution of a loss and harm fund finally yr’s COP28 local weather summit in Dubai, saying it was “an important first step” in the direction of serving to weak international locations .
“We’re fairly optimistic that there will probably be momentum,” he mentioned, calling for extra help past what developed nations have promised.
“Clearly, when it comes to funding, the problem we face is that, given the dimensions of the disasters, no quantity of funding will probably be adequate.”
