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. 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. As climate threats intensify, the integration of risk financing instruments such as parametric insurance into local planning offers a proactive approach to ecosystem-based disaster risk reduction and climate adaptation. It assesses the legal permissibility, operational feasibility, and audit readiness of using various LGU-managed or nationally administered public funds to support insurance premiums. The research aims to support the mainstreaming of ecosystem-based parametric insurance within local climate finance strategies and disaster risk management planning in the Philippines.

With funding from IKI – BMUKN, the study was organized by GIZ project on Strengthening Disaster Resilience and Risk Mitigation through Ecosystem-based Planning and Adaptation (E4DR) in the Philippines and conducted by GOPA-AFC GmbH.