Filipino lawmakers and activists recently called for a national law that would compel major carbon-emitting companies to compensate communities for losses caused by climate change.
The proposal came as Manila hosted a high-level international meeting on climate loss and damage.
This week, environmental groups and advocates discussed the urgency of the proposed Climate Accountability (CLIMA) Bill, which sought to penalize companies exceeding greenhouse gas (GHG) emission thresholds.
The meeting, organized by the Legal Rights and Natural Resources Center (LRC) and Greenpeace Philippines, underscored the growing demand for accountability in addressing climate impacts.
“Climate destructive businesses must be made to pay for the costs of climate impacts borne by communities,” said Lea Guerrero, Greenpeace Philippines country director.
She noted that existing funding for climate loss and damage was insufficient, calling recent United Nations climate finance outcomes “disappointing.”
The discussions were timed ahead of the inaugural meeting of the Board for the Fund for Responding to Loss and Damage (FRLD), a United Nations-backed mechanism established to assist vulnerable countries recovering from climate-related disasters.
The fund currently holds $700 million—far below the estimated $100 billion needed annually by 2030, according to a coalition of developing nations.
The CLIMA Bill, introduced in Congress last year, proposed penalties for companies breaching carbon emission thresholds, with the funds directed into a Climate Change Reparations Fund (CCRF).
Advocates argued that the Philippines’ hosting of the FRLD Board meeting provided an opportunity to strengthen the push for passing the legislation.
“The Climate Accountability (CLIMA) bill filed in Congress in 2023 is a first in the global South. It will penalize carbon majors that breach acceptable thresholds for carbon emissions,” said Maya Quirino, associate executive director of the LRC.
She explained that the penalties would be allocated to the Climate Change Reparations Fund (CCRF), designed to provide direct access to affected communities, with a focus on vulnerable and marginalized groups, following large-scale disasters.
The proposed legislation also included provisions allowing communities to take legal action against carbon majors for damages caused by climate change. Advocates believed the law could set a precedent for global climate justice efforts.
Supporters of the CLIMA Bill believed its passage could influence international climate policy. Wealthier nations have historically resisted framing financial contributions as reparations, fearing legal ramifications.
However, the push for accountability has gained momentum, with some experts framing loss and damage as a human rights issue.
“Loss and damage should be treated as part of the remediation pillar of climate justice,” said United Nations Special Rapporteur Surya Deva.
“Remediation in the context of climate change should be interpreted in the sense of full reparation, comprising restitution, compensation, rehabilitation, satisfaction, and guarantees of non-repetition,” Deva added.
Deva urged developed countries to not only provide financial assistance but also facilitate the transfer of green technologies and support climate-displaced populations.
The Loss and Damage Collaboration estimated $671 billion would be needed annually by 2030 to address climate impacts, while a United Nations report last year placed the figure at $300 billion.
