MANILA, Philippines — The Asian Development Bank (ADB) has approved $3.8 million worth of support for the development of insurance for the restoration, conservation and management of coral reefs in the Philippines and three other countries in Southeast Asia and the Pacific.
ADB said the project involves the development of climate risk financing and insurance solutions to protect coral reefs in the Philippines, Indonesia, Fiji and Solomon Islands.
“The development of innovative coral reef financing and insurance models under this project will not only enhance and support the effective management of risks coral reefs are exposed to, but also improve the climate resilience and insurability of coastal assets and communities,” ADB financial sector group chief Junkyu Lee said.
The Asia-Pacific Climate Finance Fund (ACliFF) is extending $2.5 million for the project, while the Global Environment Facility through its Challenge Program for Adaptation Innovation is financing $1.3 million.
Managed by ADB, ACliFF is a multi-donor trust fund set up with financial support from Germany’s Federal Ministry of Economic Cooperation and Development.
The fund supports the development and implementation of financial risk management products such as coral reef insurance to help provide capital for climate investments and improve climate change resilience.
“Many of these coastal communities also depend on the ongoing health of the ocean and its ecosystems for their livelihoods,” Lee said.
The Coral Triangle, which covers a vast marine region in the Asia and Pacific, is home to the highest coral diversity in the world.
Coastal cities and communities in Asia and the Pacific face risks from rising sea levels and increasing frequency of natural hazards.
ADB said having healthy coastal ecosystems such as coral reefs provide a first line of defense to protect coastal shores, assets, infrastructure, and livelihoods.
In response to the growing threats to Asia and the Pacific, initiatives on climate and disaster resilience are among those being prioritized by the ADB.
Earlier this year, ADB approved a $250 million policy loan to support the Philippines’ climate change adaptation and mitigation efforts.