ASEAN states have to ‘work very closely’ to tackle region’s climate change risks, says bloc’s sec-gen

DISASTER RISK REDUCTION FINANCING

Southeast Asia, which is prone to rising sea levels, floods, heatwaves and droughts, faces challenges when it comes to financing climate action, said observers at the SIEW summit. 

“If you look at reactive financing, clearly there is significant financing that’s going on, after (a disaster) has taken place,” said Dr Ramesh Subramaniam, director general and group chief of the sectors group at the Asian Development Bank (ADB). 

“But the challenge that we face is that, in terms of allocating from your fiscal resources, a certain portion of the budget to be ready to face disasters, that has been very, very slow,” he told CNA.

“And if you look at insurance markets, I would say it’s almost non-existent.”

The lender last month approved a new goal to devote 50 per cent of its annual lending to climate finance by 2030.

During the interview, Dr Subramaniam touched on the establishment of a loss and damage fund at the COP28 climate summit in Dubai last year, saying that it is “a very important first step” towards helping vulnerable countries.

“We are quite optimistic that there’ll be momentum,” he said, calling for more support beyond what has been pledged by developed nations. 

“Clearly, in terms of financing, the challenge that we face is that given the scale of disasters, no amount of funding is going to be enough.”