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21 InsuranceasaResponse toLossandDamage? 501
differentiated from legal liability,maybenecessary, if not essential, formotivating
evenvoluntary support for insurance instruments on the scale contemplated by the
L&Ddiscussions.
Principlesof solidarity andaccountability are stronglyvoiced in theFramework
ConventiononClimateChange (UNFCCC),which states that parties should act to
protecttheclimatesystemâonthebasisofequalityandinaccordancewiththeircom-
monbut differentiated responsibilities and respective capabilitiesâ (UnitedNations
1992). A fundamental element of this principle, which is restated in the preamble
to the ParisAgreement, is the need to take account of the different circumstances,
particularlyeachStateâscontributiontotheproblemandcapacitytoremedyit(Deci-
sion3/CP.19).TheWIM,likewise,referstotheneedtotakeaccountofdifferentiated
responsibility (accountability) for losses and damages (Lees 2016).The principles
set out in theUNFCCCand ParisAgreement suggest that those bearing responsi-
bility for lossesanddamages,and thosemost capableofaddressing it, shouldbear
someobligation tocontribute to insurancepremiums for climate-attributed risks in
highly vulnerable countries. In fact, many developing country Parties and NGOs
haveadvocatedtheaccountabilityprinciple.ThesubmissionofCAREtothecurrent
WIMworkplan is illustrative:
âŚ(WIM)shouldapplyprinciplesofglobalequity, includingtakingintoaccountaâpolluter
paysâ-basedapproach togeneratingfinanceforaddressing lossanddamagefromcountries,
companies and institutions who significantly contribute to the causes of climate change
through fossil fuel emissions (CAREInternational2017).
Invokingresponsibility/accountabilityinthediscourseondevelopedcountrysup-
port (but avoiding legal liability) changes the paradigm of post-disaster support
from âcharityâ to âamendsâ, which has significance in terms of allocating funds
beyondhumanitarianassistancebudgets.Arguably,aresponsibility-baseddiscourse
can change themotivation for assisting victims of climate-attributed impacts and
risksâsoessential to implementing theParisAgreementandmaintaining itsvolun-
tary, cooperation-focusedapproach (seechapterbySchinkoet al. 2018).
21.5.2 ExperienceofMicro-insurance forEquitably
Allocating theImpactsandRisksBurden
Almostwithoutexceptionmicro-insuranceschemesthatserve theresource-poorare
subsidisedeitherbynational taxpayer fundsor,moreoften,by internationaldonors,
internationalfinancialinstitutions,NGOsandofficialdevelopmentassistance(Mech-
ler et al. 2006;Schäfer andWaters2016).Fewprivate insurers areoptimistic about
the prospects of providing non-subsidised insurance to clients below the poverty
level (SwissRe2012).
Asoneexample,IndiaâsNationalAgriculturalInsuranceScheme(NAIS),globally
thelargestmicro-insurancecropprogram,targetsmainlymiddle-incomefarmersand
isheavilysubsidisedbyIndiantaxpayers(Mechleretal.2006).Asanotherexample,
thepro-poorR4initiativediscussedaboveismadepossiblebythesignificantsupport
it receives fromNGOs and donors as well as its reliance on funds (in Ethiopia)
Loss and Damage from Climate Change
Concepts, Methods and Policy Options
- Title
- Loss and Damage from Climate Change
- Subtitle
- Concepts, Methods and Policy Options
- Authors
- Reinhard Mechler
- Laurens M. Bouwer
- Thomas Schinko
- Swenja Surminski
- JoAnne Linnerooth-Bayer
- Publisher
- Springer Open
- Date
- 2019
- Language
- English
- License
- CC BY 4.0
- ISBN
- 978-3-319-72026-5
- Size
- 16.0 x 24.0 cm
- Pages
- 580
- Keywords
- Environment, Climate change, Environmental law, Environmental policy, Risk management
- Categories
- International
- Naturwissenschaften Umwelt und Klima