Battle for Corporate Liability in Addressing Climate Damages
The Philippines has taken a significant step forward in the fight against climate change with the introduction of the world's first climate reparations bill, known as CLIMA. This groundbreaking legislation, introduced in the Philippine Congress in 2023, aims to hold corporations accountable for their role in the climate crisis and to provide a legal framework for communities to seek reparations for losses and damages.
At the heart of CLIMA is the Climate Change Reparations Fund, a pool of money for victims to file claims and receive compensation. The fund, managed by the Philippine Bureau of Treasury, is set to launch with about $88,472. This is just the beginning, as the bill is based on the 'polluter pays' principle, which holds that those who cause the damage should bear the costs.
The CLIMA bill offers a model that could be replicated elsewhere, according to Reyes, as temperatures rise, storms intensify, and communities struggle to rebuild. This is particularly relevant given that the top 10% of global economies and corporations are responsible for more than half of emissions on the planet.
The Carbon Majors report published in April 2024 finds that 122 corporations are responsible for 72% of fossil-fuel-linked carbon emissions from 1854 through 2022. These companies are mainly the ones outside the identified major fossil fuel producers and related sectors such as gas, coal, and cement manufacturers. Gernot Wagner, a climate economist at Columbia, notes that renewables are getting cheaper while fossil fuels lose ground.
The cost of climate disasters is mounting. Over the past two decades, climate disasters have caused an estimated $2.8 trillion in damages worldwide. This includes the damages from Typhoon Haiyan, which hit the Philippines in November 2013. Typhoon Haiyan killed more than 6,300 people and left over 4 million homeless. The cost of its damages now exceeds $13 billion.
Many nations in the Global South cannot absorb such losses. The pledged amount for the global loss-and-damage fund under the United Nations Framework Convention on Climate Change, recently announced at COP28 in Dubai, falls painfully short, according to Reyes, as the needs of developing countries for loss and damage exceed the pledge by a significant margin.
The Commission of Human Rights in the Philippines has produced a report linking climate change to human rights violations. CLIMA is aimed at making fossil fuel giants cover the costs of disasters caused by climate change. By mid-century, annual losses from climate disasters could reach up to $3.1 trillion. With the CLIMA bill, the Philippines is setting a precedent for other countries to follow in holding corporations accountable for their role in the climate crisis and providing reparations for those affected.
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