Building Financial Resilience to Climate Impacts
A Framework for Governments to Manage the Risks of Losses and Damages
Governments are facing significant climate-related risks from the expected increase in frequency and intensity of cyclones, floods, fires, and other climate-related extreme events. The report Building Financial Resilience to Climate Impacts: A Framework for Governments to Manage the Risks of Losses and Damages provides a strategic framework to help governments, particularly those in emerging market and developing economies, strengthen their capacity to manage the financial implications of climate-related risks. The goal of the framework is to support sound public financial management strategies that take into account budgetary and financing constraints, and to foster broader actions at the national and international levels.
The report examines the role of governments in identifying and assessing climate-related physical risks and their impacts on public finances, and reporting climate-related fiscal risks to promote transparency in public financial management. It discusses how to mitigate those risks through protecting households and businesses, and developing integrated multipronged financial strategies to fund government expenditure needs. Finally, it calls for promoting integrated strategies to strengthen financial resilience at the country and regional levels, and for mobilising development co-operation to strengthen global climate financial resilience.
Philippines
This section aims to provide a short overview of the past and future hazards based on the IPCC Sixth Assessment report (Shaw et al., 2022[1]). It discusses the observed hazards, the projections for the future, and concludes with a discussion of exposures and vulnerabilities. The Philippines comprises approximately 7,000 islands, most of which can be characterised as mountainous terrain bordered by narrow coastal plains. shows the historical averages of temperature and precipitation (1990-2020). Average temperatures are generally high at 25°C with little variation across the country or throughout the year. Average annual rainfall is approximately 2400 mm, but with significant variation both across the country and the year. Climatological variations in the Philippines are significantly influenced by El Niño Southern Oscillation (ENSO), with El Niño causing droughts and La Niña causing rainfall leading to floods (OECD, 2020[1]).