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By 2024 a New Collective Quantified Goal on Climate Finance will be set. It is essential to ensure that finance to address loss and damage is recognised as an equal part of the new climate finance goal, specifically as the third pillar.

Climate change induced loss and damage is accelerating and derailing gains made in poverty eradication, access to education, opportunities for women and girls and many more sustainable development aims. Additionally, loss and damage is contributing to human and community displacement, is impacting livelihoods including as a result of increased soil salinisation, and destroyed harvests, and is threatening cultural heritage. Loss and Damage overwhelmingly impacts developing countries and communities and population groups in the global south that have historically contributed the least to climate change, yet are disproportionately impacted by climate change the most, and additionally often have the least resources to tackle climate change. Such climate impacts and loss and damage are set to continue and worsen unless urgent action is taken to tackle climate change, and address the underlying vulnerabilities that many developing countries face.

It is therefore essential that all countries have the ability to fulfil their commitments to contribute to achieving the global temperature rise limit of 1.5°C. However, the 2021 NDC Synthesis report clearly shows that developing countries do not currently have the financial ability or capacity to carry out measures to address climate change at a sufficient scale. Thus, additional, adequate financial support is required. Particularly as financing needs to address loss and damage in developing countries are conservatively estimated at between 290 billion and 580 billion USD by 2030. Yet the existing global climate finance goal of US$100 billion per year is predicted to not be met until 2023 and is not predicted to be surpassed until 2024.