Mapping potential funding sources for ecosystem-based adaptation insurance premiums

This study presents an exploratory, legitimate, and fiscal analysis of potential public financing pathways that can enable LGUs to pay premiums for parametric insurance schemes aimed at protecting and restoring mangrove and marine ecosystems. Local Government Units (LGUs) in the Philippines are confronted with uncertainty whether public funds can be used for payment of insurance premium for natural assets such as Mangroves without risking of audit findings after.

Among these, the LDRRMF and the General Fund emerged as the most legally defensible and immediately accessible sources for premium payment by LGUs. These options are well-established within the LGU fiscal ecosystem and align with current planning and budget appropriation processes. The PSF offers potential as a co-financing source, while the National Disaster Risk Reduction and Management Fund and NGP hold thematic alignment but require policy clarification or administrative evolution to support direct premium subsidies.