Rapidly growing lower middle-income countries such as the Philippines bear the brunt of disaster-induced economic losses. The average impact of disaster in these countries from 2001 to 2006 is estimated to equal 1% of the gross domestic product – this is 10 times higher than the impact of disaster on high-income countries. This disproportionate impact has been attributed to the increasing exposure of high-value assets as these countries develop.

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The Philippines is extremely hazard-prone, subject to volcanic eruptions, typhoons, storm surges, tsunamis, sea level change, floods, landslides, drought and monsoon delays. It has been labeled as the third most vulnerable country to weather-related extreme events. It is thought that climate change will reduce cultivatable land, agricultural productivity, and food security. Furthermore, climate impacts on coral reefs will have detrimental effects on fisheries and the country’s tourism industry. Rapid urbanization, environmental deterioration, and unsustainable development practices will further exacerbate the nation’s vulnerability to climate change. Informal settlements are among the most vulnerable to climate change. Given the ongoing and predicted impacts of climate change, the Philippines government has attempted to integrate CCA into existing DRR polies and structures.