The representatives of developing countries and civil society on Wednesday demand that developed countries including US and EU will have to share the liabilities especially in respect of loss and damage arising out of climate change.
In COP 21, developing countries and civil society organizations said that, in fact, it is the US and the EU, who are leading the developed countries are blocking negotiations about loss and damage, which is a part of the intended Paris Climate Deal.
Developed countries primarily disagreed to the idea of keeping text on loss and damage; however, later on are giving emphasis on introduction of insurance mechanism for loss and damages but do not want to take the responsibilities.
Responding to it, representatives of the developing countries said that it will be meaningless if there is no acceptance of liability to address the loss and damage.
US have proposed to give 30 million dollar for climate risk insurance to protect the poor (Pacific, Central America and Africa). Another country like Germany has offered 170 million dollar for climate insurance. Notably, service sector is the highest contributing element of world GDP while financial service inclusive of insurance and reinsurance is the most dominant sector in the service sector. Exploring climate change as an excuse the financial service sector of Europe and North America are trying to expand their market in poor developing and least developed countries.
Talking with the Daily Observer different experts expressed their reactions over this proposal given by the developed countries.
They said that through this proposal the developed countries actually want to promote a new form of Market Oriented Approach using climate crisis.
Jahangir Hasan Masum, Executive Director of Coastal Development Partnership (CDP), said that these developed counties want to expand their insurance business in poor countries using climate change-triggered loss and damage.
"Germany is the leader in global insurance business and there is no doubt that through this approach it will boost their private sector," he said.
Experts also expressed their concern over the impact of this approach if this is implemented.
Once this insurance approach is introduced, their private sector will be benefited as we know that for any insurance mechanism there will be a premium system.
And availing premium system is beyond the capability of the poor and marginal people who are the worst victims of climate change.
So, the experts and representatives of civil society are focusing on these realities especially of the Least Developed Countries (LDC) like Bangladesh, which will not be benefited from this approach offered by the Developed countries.
As poor people and farmers will not be able to avail this facility, so ultimately it will not bring positive result.
The positive outcome is possible if only there is no premium system in the insurance company.
Ziaul Haque Mukta, Vice President, Campaign for Sustainable Rural Livelihoods (CSRL) of Bangladesh said, "We want resource transfer neither from rural to urban areas nor from poor country to rich country."
He also noted "we want poor countries' governments to invest more in social protection programme for small and marginal producers, not for the so- called insurance and reinsurance mechanism."
Sharmind Neelormi of CSRL said there should be no net outflow of funds, in the name of insurance, because what it will bring in return is still a big question.
"Conceptually this approach is good, but with no clear mechanism it could be harmful for us," she said.
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