Purisima calls for mandatory worldwide catastrophe insurance

MANILA, Philippines - Given an alarming increase in both the number and intensity of typhoons hitting the country, Finance Secretary Cesar Purisima has reiterated calls for the establishment of response mechanisms including a mandatory worldwide catastrophe insurance or financing facility to address climate change-related disasters. 

During the 4th Annual Pacific Real Estate Investment Summit yesterday, Purisima underscored the need for the country and the rest of the world to consider mandatory risk insurance where the premium is based on the carbon footprint of countries.

He said  the cost burden for such protection should be equitably shared with due consideration to each country’s carbon footprint. 

Carboon footprints are a gauge of the amount of greenhouse gases released into the atmosphere by a country’s industrial and other activities.

“This will only work if all countries in the world will participate,” Purisima said.

He said the Internatlonal Monetary Fund is the ideal entity that should help things get started. 

“We’ve been witnessing unusual intensities.  And the Philippines, which is among the vulnerable countries that regularly suffer the consequences of climate change, should start doing something about it,” Purisima said.

Purisima earlier noted that globalization has brought about climate change and created a situation where developed countries are the “big winners” while the developing ones, like the Philippines, are “less of a beneficiary.”

The government has set a budget of P13 billion next year for change adaptation and mitigation in the country, P1 billion higher than the 2011 level.

Typhoon Yolanda, said to be one of the worst typhoons that has hit the country, smashed into central Philippines Friday,  ravaging seaside homes,  buildings and major infrastructure. Scientists are speculating as to whether disaster might be due to changing global climate.

Climate change is seen to intensify in the coming years, threatening in particular Asian nations whose huge populations reside in coastal communities vulnerable to storm surges and flooding.

A new study showed that climate warming trends are triggered by human activities.

Some countries are now moving  toward a low carbon economy to effectively deal with climate change.