Enrile lauded Finance Secretary Purisima’s move to form climate finance group

SENATE OFFICE, Manila, April 26, 2011-On the issue of climate change, finance Senate President Juan Ponce Enrile lauded Department of Finance (DOF) Cesar Purisima’s move to form and lead the Climate Finance Group (CFG) in the executive branch in the collaborative leadership displayed recently by the DOF and the Climate Change Commission (CCC).

Enrile said that CFG should start with the right ambition and sense of urgency and hoping that it can cover efforts to establish national risk-transfer and catastrophe insurance mechanisms, review ill-advised climate change loans and secure funding for the country's climate change action plan.

The Senator praised Purisima in giving his personal attention on climate finance, saying that the chairmanship of the DOF over the executive's Climate Finance Group is a sign that steps will now be taken to arrest the governance chaos prevailing over the administration of climate finance that has entered country coffers.

“Although the country's priority climate change response should be adaptation, more money has flowed to mitigation activities, which is the main responsibility of the world's top polluters. Worse, funds that went to adaptation have come in the form of loans, which is unacceptable,” he explained, adding that the climate change is an issue of tort. A compensatory framework governs this issue and we need to leverage finance that addresses our country's priorities, not the plans of rich nations.

Last October, a landmark measure that sought to establish the people’s survival fund (PSF) for local government units (LGUs) and communities were filed by Enrile under senate bill 2558, stating that the PSF provides incentives for early climate action from localities, which can tap the fund if it formulates local climate adaptation plans based on vulnerability and development assessments.

It also stated that to address rising sea levels, or to promote agricultural programs resilient to extreme temperatures, severe precipitation or persistent flooding, the PSF can be used by LGUs with coastal communities.

The Senator singled out the efforts of Climate Change Commission Vice Chair Mary Ann Lucille Sering, who led negotiations that secured for the Philippines a seat in the Transitional Committee, a body tasked to design the rules of the global Green Climate Fund, or GCF that was established last  December in the international climate negotiations held in Cancun, Mexico.

Enrile said that the collaboration of Secretary Purisima and Secretary Sering are consistent with the kind of leadership demanded by President Noynoy Aquino in response to the climate change crisis.

The Senate President called on the DOF and the CCC to support the early passage of the PSF to make sure local communities can keep pace with efforts to mainstream climate change into national operations.

“The GCF is expected to manage at least $100 billion in annual funds pledged by rich countries for climate change adaptation and mitigation activities. The Philippines was formally made a member of the Transitional Committee at the recently concluded Bangkok round of climate talks,” Enrile explained, saying that the membership in the Transitional Committee is vital to the national interest.

“With the right design, the Philippines will be eligible to tap the fund, adding that we can put in place direct access modalities that lessen the need for financial intermediaries; thus, reduce transaction costs,” he ended. (Jason de Asis)