Battle for Corporate Liability in Addressing Climate Change-Related Damages

In the heart of Southeast Asia, the Philippines, a nation frequently battered by climate disasters, is spearheading a revolutionary approach to climate justice. The CLIMA bill, introduced in 2023, is a groundbreaking piece of legislation that could transform the way climate-related damages are addressed, not just in the Philippines, but potentially worldwide.

The CLIMA bill is rooted in the "polluter pays" principle, a concept that suggests those who cause the damage should bear the costs. This principle is at the core of the bill's proposed Climate Change Reparations Fund, a pool of money where victims could file claims and receive compensation for economic losses, relocation, recovery, and long-term rebuilding.

The need for such a fund has never been more urgent. Over the past two decades, climate disasters have caused an estimated $2.8 trillion in damages, with catastrophic events like Typhoon Haiyan, which struck the Philippines in November 2013, leaving more than 6,300 people dead and over 4 million homeless. The damages caused by Typhoon Haiyan now exceed $13 billion.

The CLIMA bill offers a model that could be replicated elsewhere to give climate-vulnerable communities a legal framework to demand just reparations. The Philippine Bureau of Treasury will manage the Climate Change Reparations Fund, with an initial launch of about $88,472.

However, the pledged amount for the global loss-and-damage fund falls painfully short of what is actually needed by developing countries for their loss and damage needs. World leaders pledged $661 million to a global loss-and-damage fund under the United Nations Framework Convention on Climate Change at COP28 in Dubai, but this is a drop in the ocean compared to the estimated annual damages from climate disasters, which could reach up to $3.1 trillion by mid-century.

The top 10% of global economies and corporations are responsible for more than half of the emissions on the planet. A recent report, 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. This underscores the importance of holding these entities accountable for the damages they have caused.

A new global framework for climate reparations could give frontline communities the tools to recover and hold wealthy, high-emitting corporations accountable. Frameworks like CLIMA show that frontline communities can still turn loss into precedent and precedent into power.

In the face of rising temperatures, intensifying storms, and struggling communities, the need for action addressing climate disaster recovery and rebuilding has never been more urgent. The CLIMA bill in the Philippines is a first-of-its-kind attempt to turn climate justice into law, offering hope for a more equitable future for all.