The objective of this subproject is to provide consulting services to implement the ADB's knowledge and support technical assistance (KSTA), entitled “Building Coastal Resilience through Nature Based and Integrated Solutions”. This project falls under the TA's Output 4: “Risk financing solutions and transfer mechanisms to promote climate resilience for ecosystems across project sites in four Developing Member Countries (DMCs) established and operationalized".Healthy coastal ecosystems provide natural protective services and a first line of defense for coastal cities, communities, and infrastructure, as well as other valuable ecosystem services. Well maintained coral reefs, for example, can absorb up to 97% of wave energy, and provide critical ecosystem services such as nurseries and feeding grounds for fisheries, providing coastal protection, and securing an important food supply for many coastal communities.
Th health of these ecosystems is, however, rapidly declining. Preventing (and reversing) this decline requires a number of interventions, including (a) building the case for effective coral reef protection, restoration and sustainable management by defining the range of ecosystem goods and services they provide and quantifying the environmental, social and economic risks associated with their damage, (b) implementing strong policies and governance approaches to underpin their protection, restoration and sustainable management and (c) deploying sustainable financing and risk management systems to address climate change related hazards (e.g. storm damage).
The project will include targeted research, assessment, preparation, and knowledge sharing towards delivering technical and policy advice for the implementation of innovative coral reef financing and insurance model(s). As such, the project will focus on:
Building the environmental, social and economic rationale (business case), by providing a robust evidence base to change perceptions on coral reefs (and other natural assets) so that regulations and investments to protect them are not seen as a trade-off to economic growth, job creation and livelihoods, but rather as a pre-requisite and a necessity to reduce the costs of coastal damage and secure environmental, social and economic resilience, in particular for coastal communities.
Assessing viable options for sustainable financing and risk management models and approaches, with a focus on parametric insurance products, to optimize and compliment the limited public funds allocated for coral reef protection and restoration. Self-financing options through leveraging public and private sector finance will also be explored.
The TA essentially focuses on
these two key issues, by providing an evidence base on the economic value of
coral reefs, and the design of sustainable financing and risk management
approaches, with a focus on parametric insurance products. This will be done
for pilot sites across Philippines, Indonesia, Solomon Islands and Fiji, which
can then be used as a model for further replication, with the eventual aim (by
2030) of:
$100 million of funding mobilised, with
600,000 people benefitting from improved livelihood opportunities as a result,
and 200,000 people benefitting from the coastal resilience service (e.g.
against storms) that coral reefs bring.