What is Loss
and Damage?
and Damage?
The catastrophic floods in Pakistan, the devastation caused by Hurricane Ian, and record-breaking summer heat waves in Europe make it crystal clear that loss and damage from human-induced climate change is already happening — but what is it and why is it important?
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What needs to happen to address loss and damage?
- What do governments need to do?- What can you do?For a list of common abbreviations and terms click here.
1. What is Loss
and Damage?
and Damage?
It's a term...
The Earth’s atmosphere has warmed by more than 1.1°C centigrade in the last 25 years as a result of human activities, primarily due to the burning of fossil fuels such as coal, oil and gas. This increase in temperature means that extreme events like floods, cyclones, wildfires and heatwaves are hitting more frequently and with more intensity. At the same time, slow-motion disasters like sea level rise, coastal erosion and the melting of glaciers are speeding up, whilst catastrophes like droughts are lasting longer.
The technical term given to the unavoided or unavoidable devastation that is being caused by higher global temperatures that have resulted from human-induced climate change is “loss and damage”.
The technical term given to the unavoided or unavoidable devastation that is being caused by higher global temperatures that have resulted from human-induced climate change is “loss and damage”.
What “loss” is caused by the Climate Crisis?
The “loss” of loss and damage refers to things that are lost permanently to the climate crisis such as human and animal lives, species, territories, water sources, ecosystems, livelihoods, heritage sites and languages.
What “loss” is caused by the Climate Crisis?
The “loss” of loss and damage refers to things that are lost permanently to the climate crisis such as human and animal lives, species, territories, water sources, ecosystems, livelihoods, heritage sites and languages.
A lone palm in Daulatkhan, on Bhola Island, in Bangladesh. In 1984 this palm tree on the bank of the Meghna river stood 1 km away from the riverbank, now its roots are submerged at high tide following the failure of the coastal defence as a result of cyclone Sidr in 2007. Image credit: Lena Dobrowolska & Teo Ormond-Skeaping ©
What “damage” is caused by the Climate Crisis?
The “damage” of loss and damage refers to things that have been affected by the climate crisis but can be restored, such as impacts to physical and mental health, soils, roads, schools, homes, health centres, and businesses.
What “damage” is caused by the Climate Crisis?
The “damage” of loss and damage refers to things that have been affected by the climate crisis but can be restored, such as impacts to physical and mental health, soils, roads, schools, homes, health centres, and businesses.
A rain bomb caused large amounts of loss and damage in a very short time, including the loss of over 459 lives and damages estimated at $2 billion USD, in KwaZulu-Natal in South Africa in 2022. Image credit: President Cyril Ramaphosa visits flood-stricken parts of KwaZulu-Natal, GovernmentZA, licenced under CC BY-NC-ND 2.0.
Is it "loss and damage"
or "Loss and Damage"?
or "Loss and Damage"?
The terms “loss and damage” or “losses and damages” (lowercase “l” and “d”) are used to describe the manifestation of the impacts of the climate crisis which have not been avoided through failure to mitigate global heating by reducing greenhouse gas emissions and/or cannot be avoided by adapting to the challenges posed by the rising temperatures through adaptation efforts such as building sea walls.
Whereas “Loss and Damage” (uppercase “L” and “D”) is used to describe the policies and plans that are used to address loss and damage, such as those that are negotiated at the United Nations Framework Convention on Climate Change (UNFCCC).
Whereas “Loss and Damage” (uppercase “L” and “D”) is used to describe the policies and plans that are used to address loss and damage, such as those that are negotiated at the United Nations Framework Convention on Climate Change (UNFCCC).
What is the difference between Mitigation, Adaptation and Loss and Damage?
Under the Paris Agreement, there are three pillars of climate action:
The first is mitigation, which involves the reduction of greenhouse gas emissions through such activities as swapping fossil fuel-based power generation to solar and wind systems and reducing agricultural and industrial activities that are highly polluting. Mitigation is the first line of defence against future impacts and the best way to avoid or avert loss and damage from climate change.
The first is mitigation, which involves the reduction of greenhouse gas emissions through such activities as swapping fossil fuel-based power generation to solar and wind systems and reducing agricultural and industrial activities that are highly polluting. Mitigation is the first line of defence against future impacts and the best way to avoid or avert loss and damage from climate change.
A coal fired power plant in Russia releases green houses gases. The developed countries who were the first to industrialise with the help of coal, such as the USA, UK and Europe, are the greatest contributors to total global carbon emissions and there for hold the greatest responsibility to rapidly reduce their emissions and provide support to address loss and damage. Video Credit: Shutterstock ©
The second is adaptation, which involves preparing communities and infrastructure for climate impacts. This can include measures such as protecting communities from sea level rise by building sea walls or helping them move to higher ground when this is not possible, preparing for extreme events like cyclones by investing in early warning systems and storm shelters, or switching to drought or flood-resistant crops. Adaptation helps reduce or minimize loss and damage from climate change. Enhancing adaptive capacity and ensuring support is available for adaptation to be carried out to the extent possible is critical.
Sandbags being laid for the foundation of a river bank defence, Elisha Ferry Ghat, Bhola Island, Bangladesh. Image Credit: Lena Dobrowolska & Teo Ormond-Skeaping ©
And the third pillar is Loss and Damage, which sees actions taken to address the impacts caused by the climate crisis that could not, or were not, avoided through mitigation or reduced through adaptation. Recognising that adaptation has limits, the IPCC refers to “hard” and “soft” adaptation limits. Hard limits are where adaptation is not possible, while soft limits are where options to adapt may exist but are not available.
Addressing loss and damage may involve rebuilding infrastructure such as roads and bridges, hospitals and schools, the reconstruction of homes, support to establish new livelihoods, mental and physical health care, programmes to rediscover or redefine culture, and acts of memorial and remembrance.
Addressing loss and damage may involve rebuilding infrastructure such as roads and bridges, hospitals and schools, the reconstruction of homes, support to establish new livelihoods, mental and physical health care, programmes to rediscover or redefine culture, and acts of memorial and remembrance.
A woman takes part in a ceremony to mark the "death" of Switzerland's Pizol glacier in September 2019. Addressing loss and damage must go beyond re-building infrastructure to include programs to address the loss of culture heritage and identify and as well as mental health impacts. the Image Credit: FABRICE COFFRINI/AFP/AFP/Getty Images
Whilst there is some overlap between adaptation and addressing loss and damage, such as when planned relocation is undertaken, there are many types of loss and damage that cannot be adapted to such as the loss of culture, territory, and human and animal lives.
2. How is Loss and Damage happening?
It happens quickly and Slowly
Loss and damage caused by the climate crisis can result from extreme weather events such as cyclones, wildfires, and floods, as well as from slow onset climatic processes which include increasing temperatures, desertification, loss of biodiversity, land and forest degradation, glacial retreat and related impacts, ocean acidification, sea level rise, and salinisation.
When climate intensified Hurricane Michael made landfall in Central America, Cuba, and Florida in the United States, in October 2018, in just a few days it caused 74, including 59 in the United States and 15 in Central America and an estimated $25.1 billion (2018 USD) of economic loss and damage.
When climate intensified Hurricane Michael made landfall in Central America, Cuba, and Florida in the United States, in October 2018, in just a few days it caused 74, including 59 in the United States and 15 in Central America and an estimated $25.1 billion (2018 USD) of economic loss and damage.
218 Nannook Road was destroyed by a storm surge caused by climate intensified Hurricane Michael when it hit Mexico Beach, Florida, USA in 2018. Image Credit: Lena Dobrowolska & Teo Ormond-Skeaping ©
Whereas, Lake Chad has shrunk by 90% in the last 60 years, with the climate crisis playing a significant role in its disappearance. As a result of the Lake drying up, the 20 million people who depend on the lake for livelihoods including fishing, agriculture and pastoralism have faced increasing hardship which has led to conflict, forced migration and displacement.
The dry bed of Lake Chad, in the country of Chad, is seen from the air. Image Credit: GRID-Arendal, licenced under CC BY-NC-SA 2.0
In some cases, an extreme event may also set in motion a slow-onset process that continues to cause loss and damage many years after the initial disaster. For example, when Cyclone Sidr struck the southwestern parts of Bangladesh in November 2007 it pushed salt water from the Bay of Bengal well inland causing saltwater intrusion that has since impacted crop yields and drinking water sources that have led to health impacts such as hair loss and gynaecological issues.
It's Economic And Non-Economic
When we are talking about loss and damage that has taken place or might take place in the future, a distinction is made between “economic” loss and damage and “non-economic” loss and damage (NELD).
“Economic” loss and damage refers to the loss and damage caused by the climate crisis that can be assigned monetary values. For example, the economic cost of the destruction of property such as buildings or cars, the loss of livelihood assets such as crops or livestock, the loss of productivity through the lost working hours, as well as damage to roads or power infrastructure, can be calculated and assigned a monetary value.
“Economic” loss and damage refers to the loss and damage caused by the climate crisis that can be assigned monetary values. For example, the economic cost of the destruction of property such as buildings or cars, the loss of livelihood assets such as crops or livestock, the loss of productivity through the lost working hours, as well as damage to roads or power infrastructure, can be calculated and assigned a monetary value.
Typhoon Haiyan, known in the Philippines as Super Typhoon Yolanda, was one of the most powerful tropical cyclones ever recorded. On making landfall, Haiyan devastated the city of Tacloban and led to the loss of more than 6,300 lives. Image Credit: Mans Unides, licenced under CC BY-NC-ND 2.0
Whereas “non-economic” loss and damage (NELD) refers to the loss and damage that cannot or as some would argue, should not, be measured in economic terms. NELD includes the loss of human life and damage to mental health and physical health, as well as loss and damage that impact the beliefs and values of people such as their cultures, languages, heritages and identities, their sense of place, community and social cohesion. NELD also includes loss and damage to ecosystems such as reduced biodiversity, species extinction, and disruption to, or loss of, ecosystem services such as the production of oxygen by a forest.
Sisters Kelly and Sandra comfort each other after learning that 3 family members had died in the Carr wildfire in Redding, California, in July 2018. Image Credit: AP Photo/Marcio Jose Sanchez ©
For many impacted communities, it is hard or impossible to distinguish “economic” loss and damage from “non-economic” loss and damage. To illustrate this, imagine if an atoll state like Tuvalu were to disappear due to sea level rise. The people who call the island home would incur both “economic” and “non-economic” loss and damage simultaneously. Economic loss and damage would include the loss of homes, businesses, schools and cropland, whilst non-economic losses would include the loss of ecosystems that provide food and water and mental health impacts due to the trauma of being forced to relocate. However, many things such as the loss of the island's heritage sites would cause both economic impacts, such as the loss of tourism revenues, and non-economic impacts, such as the loss of culture and identity.
The island of Tuvalu faces an existential threat due to rising sea levels. Video Credit: Shutterstock ©
In response, some loss and damage researchers are calling for the adoption of a values-based approach to averting, minimising and addressing loss and damage, that sees both economic and non-economic loss and damage considered through the prism of what impacted communities value most.
It can Be Avoided, Unavoided, Or Unavoidable
The relationship between mitigation (reducing emissions), adaptation (preparing for the impacts of the climate crisis) and other efforts to avoid and reduce loss and damage can be explained by that which is “avoided”, that which is “unavoided”, but which could have been through more mitigation and adaptation efforts, and that which is “unavoidable”.
For example, by reducing emissions and building a sea wall to protect a vulnerable village from climate change-intensified coastal erosion, loss and damage to homes, livelihoods and heritage sites are “avoided” through mitigation and adaptation efforts.
For example, by reducing emissions and building a sea wall to protect a vulnerable village from climate change-intensified coastal erosion, loss and damage to homes, livelihoods and heritage sites are “avoided” through mitigation and adaptation efforts.
Stormy Seas at Saltdean on the south coast of the United Kingdom clash with coastal defences protecting cliffs. Image Credit: Mark, licenced under CC BY-NC-ND 2.0
However, failure to reduce emissions and build a sea wall around the village to halt climate change intensified coast erosion would mean that the resultant loss and damage would have been “unavoided”.
Whereas, if adequate efforts to reduce emissions and build a sea were taken and these actions failed to stop loss and damage occurring, the loss and damage suffered by the village would be considered “unavoidable”.
Therefore actions to deal with loss and damage can be understood to fall along a spectrum which begins with mitigating climate change (averting loss and damage), then progresses to adapting to the impacts of climate change (minimising loss and damage), and finally to addressing the losses and damages caused by the climate crisis that were unavoided or unavoidable.
Whereas, if adequate efforts to reduce emissions and build a sea were taken and these actions failed to stop loss and damage occurring, the loss and damage suffered by the village would be considered “unavoidable”.
Therefore actions to deal with loss and damage can be understood to fall along a spectrum which begins with mitigating climate change (averting loss and damage), then progresses to adapting to the impacts of climate change (minimising loss and damage), and finally to addressing the losses and damages caused by the climate crisis that were unavoided or unavoidable.
3. Why is Loss and Damage happening?
An unsustainable system
From the 18th-century onwards capitalism has driven revolutions in production processes through industrialisation which have been linked to, among other things, the burning of fossil fuels, increased deforestation, intensive crop cultivation and livestock production, and the production of cement, which have significantly raised atmospheric CO2.
For over 6,000 years CO2 levels were relatively stable at 280ppm or less. However, since the mid-18th century, they have risen by over 50% to 418.3ppm in 2022. Over the last 60 years, CO2 has increased 100 times faster than any previous natural increase, such as the rapid increase of CO2 at the end of the last ice age 11-17,000 years ago. These emissions mean that the earth has entered a dangerous era of climate impacts now that global warming has reached 1.1˚C above pre-industrial levels.
For over 6,000 years CO2 levels were relatively stable at 280ppm or less. However, since the mid-18th century, they have risen by over 50% to 418.3ppm in 2022. Over the last 60 years, CO2 has increased 100 times faster than any previous natural increase, such as the rapid increase of CO2 at the end of the last ice age 11-17,000 years ago. These emissions mean that the earth has entered a dangerous era of climate impacts now that global warming has reached 1.1˚C above pre-industrial levels.
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Earth's narrow band of atmosphere seen above the Philippine Sea. Global warming has reached 1.1˚C above pre-industrial levels in the last 60 years. Image Credit: NASA, licenced under CC BY-NC-ND 4.0
The emissions that have led to the climate crisis have been disproportionately produced by the wealthiest countries. The U.S. is estimated to be responsible for 26% of historical emissions followed by EU nations with 23%. Although China is now the largest emitter of CO2 with 29%, historically it has only emitted around 11% of total emissions. Moreover, much of the emissions tied to consumption have been exported to the Global South, which is home to most factories that make consumer products for wealthy citizens in the North and South.
Pump jacks in West Texas extract crude oil. The U.S. is estimated to be responsible for 26% of historical emissions followed by EU nations with 23% . Although China is now the largest emitter of CO2 with 29%, historically it has only emitted around 11% of total emissions. Video Credit: Shutterstock ©
Human-caused climate change is supercharging many climatic extremes making them more intense and frequent. This includes sudden-onset events such as cyclones, wildfires, and floods, and slow-onset events such as droughts. Climate change-linked processes such as sea level rise, desertification, and the melting of glaciers are also accelerating with devastating consequences. When these kinds of climate-exacerbated events and processes interact with exposed and vulnerable societies, loss and damage can occur.
The eye of Hurricane Florence. Hurricane Florence produced more extreme rainfall and was spatially larger due to human-induced climate change. Image Credit: NASA, licenced under CC BY-NC-ND 4.0
The Intergovernmental Panel on Climate Change (IPCC), the UN’s scientific body on climate change, made it crystal clear in its Sixth Assessment Report, —released in February 2022— that ‘unequivocal’ impacts, including loss and damage, are currently happening across the world as a result of the climate crisis. Therefore loss and damage can no longer be considered as a future threat, as it is already happening today.
Importantly, the IPCC has also acknowledged that even if mitigation and adaptation can reduce warming to 1.5 °C there will still be unavoided and unavoidable losses and damages that need to be addressed.
Importantly, the IPCC has also acknowledged that even if mitigation and adaptation can reduce warming to 1.5 °C there will still be unavoided and unavoidable losses and damages that need to be addressed.
An open cast brown in the Rhenish district of North Rhine- Westphalia (NRW) in Germany is expanded. The IPCC has made it crystal clear that fossil fuel use must be phased out immediately to reduce warming to 1.5 °C by 2100. However, at 1.5 °C there will still be unavoided and unavoidable losses and damages that need to be addressed. Video Credit: Pond5 ©
Legacies of colonialism, debt and continued inequality, create vulnerabilities
Alongside increasing cumulative emissions, vulnerability to the loss and damage caused by the climate crisis is worsening in many places. Processes such as uneven development, unequal exchange (imperial countries expropriating wealth from other countries), increasing inequality within and between countries, poor land use planning, and the degradation of ecosystems are increasing vulnerability to loss and damage.
Although vulnerability is much higher in the Least Developed Countries, it can be high for those particularly marginalised in any context, including in developed countries in the global North.
Although vulnerability is much higher in the Least Developed Countries, it can be high for those particularly marginalised in any context, including in developed countries in the global North.
Michele and Alexander Baker take in their wrecked home after the devastating floods caused by Hurricane Katrina in New Orleans, USA. Institutional Discrimination and individual racism are both considered to have played a role in contributing to the disproportionate impact that Hurricane Katrina had on New Orleans Black community. Image Credit: Jim West / Alamy Stock Photo ©
While adaptation can reduce the burden of climate impacts on societies, climate-vulnerable nations are increasingly reaching adaptation limits as poverty, debt, overburdened bureaucracies, lack of technical skills, and other factors make effective and sustainable adaptation impossible. This means that many climate-vulnerable nations are in no position to prepare for climate impacts to reduce or avoid loss and damage.
Loss and damage could have largely been avoided if concerted mitigation action was taken when climate change risks were first recognised. Yet, thirty years of inaction on climate mitigation, inadequate finance for climate adaptation, and evidence of maladaptation (i.e. adaptation that increases vulnerability to the climate crisis) have resulted in worsening loss and damage.
Loss and damage could have largely been avoided if concerted mitigation action was taken when climate change risks were first recognised. Yet, thirty years of inaction on climate mitigation, inadequate finance for climate adaptation, and evidence of maladaptation (i.e. adaptation that increases vulnerability to the climate crisis) have resulted in worsening loss and damage.
The 2020-2023 Horn of Africa drought is an ongoing climate intensified drought that hit the countries of Somalia, Ethiopia, and Kenya. The rainy season of 2022 was recorded to be the driest in 70 years. With an estimated 43,000 dying in 2022. Video Credit: Pond5 ©
4. Where is Loss and Damage happening?
It's happening everywhere...
As of 2023, loss and damage is happening around the world, in both developed and developing countries. In 2022 alone, significant loss and damage was incurred from Typhoon Rai in the Philippines, Cyclone Batsirai in Madagascar, heatwaves in India, Pakistan and Europe, the ongoing drought in Somalia, Ethiopia and Kenya, floods in Uganda, Nigeria, and Pakistan, and Hurricane Ian in the Caribbean and USA.
The October 2017 Tubbs Fire, was at the time, the most destructive wild fire in California history. Killing 22 people and burning more than 5,643 structures across an area of 36,810 acres (149 km2) the fire cost $1.2 billion (U.S). Video credit: Pond5 ©
But it is disproportionately impacting the Global South
However, it is developing countries, particularly small island developing states and the least developed countries, due to a range of historical, geographic, structural, and socio-political factors, that are being impacted first and hardest. For example, The Vulnerable Twenty (V20) Group of Ministers of Finance of the Climate Vulnerable Forum have shown that the V20 would have been 20% wealthier today had it not been for climate change and the losses it incurred for poor and vulnerable economies.
This disproportionate impact on the poorest nations in the global South is particularly unfair when you consider it is the communities and countries that are least responsible for global carbon emissions that are bearing the brunt, and currently the costs, of addressing loss and damage. A fact that further highlights the injustice and inequality that is at the heart of the climate crisis.
Furthermore, developing countries lack the resources to reduce and address loss and damage that developed countries have at their disposal, and many carry debts from previous crises or force them to use their limited resources to cover the costs to address loss and damage. This means that vulnerable developing countries are often pushed deeper into debt when a climate disaster strikes.
This disproportionate impact on the poorest nations in the global South is particularly unfair when you consider it is the communities and countries that are least responsible for global carbon emissions that are bearing the brunt, and currently the costs, of addressing loss and damage. A fact that further highlights the injustice and inequality that is at the heart of the climate crisis.
Furthermore, developing countries lack the resources to reduce and address loss and damage that developed countries have at their disposal, and many carry debts from previous crises or force them to use their limited resources to cover the costs to address loss and damage. This means that vulnerable developing countries are often pushed deeper into debt when a climate disaster strikes.
A migrant shepherd looks for signs of life in a lamb in Surendranagar district, India, his flock having died due to the heat wave that stuck India in 2022. Extreme heat (above 47°C) and lack of water caused his animals to perish. Image Credit: SAM PANTHAKY/AFP/ Getty Images ©
For example, when climate change intensified Hurricane Maria hit the Caribbean island nation of Dominica in 2017, it led to $1.3 billion (USD) in economic loss and damage, the equivalent of 224% of GDP. Without funds available to address the loss and damage caused by the hurricane, the government of Dominica had no other option but to take on loans to rebuild and recover which pushed the island further into debt, thereby leaving it with even less resources to prepare for future hurricanes.
A view of Roseau, the capital of the Caribbean island of Dominica, seen from the window of a government building the day after Hurricane Maria struck. Image Credit: Russell Watkins/DFID, licenced under CC BY-NC-ND 2.0.
5. Who is most impacted by Loss
and Damage?
and Damage?
Not a singular homogeneous group of people
Those who experience loss and damage are not a singular homogeneous group of people and understanding who is disproportionately affected requires interdisciplinary research that is sensitive to the multiplicity of worldviews, ethical systems and values people hold. It demands an understanding of the intersectional (e.g. race, class, gender) factors and structures (e.g. laws, institutions, government) that create uneven vulnerability to the impacts of the climate crisis. However, a few examples of social groups that are recognised as being disproportionately affected by loss and damage are listed below.
Members of the Khmu tribe in the village of Tha Se in Norther Lao PDR are highly dependent on the forest as a source of food, livelihood, materials for the shelter and traditional medicines for primary health care. As the monsoon becoming more erratic and more extreme as a result of the climate crisis, dry and wet seasons are becoming less dependable affecting forest produce. image credit: Lena Dobrowolska & Teo Ormond-Skeaping ©
Indigenous Peoples
The immense losses already incurred during the colonial and post-colonial eras, continued marginalisation, and a connection between culture, identity, place and nature makes Indigenous Peoples disproportionately vulnerable to loss and damage even though they have contributed the least to emissions historically.
Homeless people sleep in the shade of an overbridge in New Delhi. At least 2,000 people died in India during the heat wave in 2015, when temperatures hovered near 50°C. In Pakistan in 2022, the death toll stood at 1,200, with some local estimates putting it at around 3,000. Image Credit: Manish Swarup/AP/Shutterstock ©
Economically, socially, and politically marginalised people
Decades of climate change and disaster research show that those who are most marginalised in societies are most vulnerable to shocks and stressors, this is also true for loss and damage. Those who are marginalised (based on, for instance, class, caste, disability, or membership of sexual/gender minority) often have limited access to resources, own few assets, have low incomes and rely on natural resources for their livelihoods. Dependence on nature for subsistence in the context of an increasingly unpredictable changing climate puts these groups at high risk of loss and damage. This is particularly so, when land is lost or becomes unsuitable for agriculture, which for marginalised communities often becomes the determining factor between a life with dignity and security or one full of exposure to different vulnerabilities and uncertainties.
Dust envelops women and children walking in Sagalo village in the Somali region of Ethiopia, an area that has been impacted by the ongoing climate intensified 2020-2023 Horn of Africa drought. Image Credit: UNICEF Ethiopia/Mulugeta Ayene, licenced under CC BY-NC-ND 4.0
Women
Gender can significantly shape experiences of loss and damage as gendered power dynamics often determine access to, and ownership of, resources, mobility, caring responsibilities, income-generating opportunities, and access to services such as climate information, health and education.
Women’s care burden is increased to provide for dependents when there is climate stress. For example, they might have to travel long distances to access water or skip meals in favour of others due to climate-related impacts such as prolonged drought. They also face a disproportionate amount of health-related loss and damage such as gynaecological issues caused by saltwater intrusion.
Women can also face loss and damage such as exposure to exploitation and abuse due to climate stress. For example, women and girls can be exposed to slavery, trafficking, forced labour and forced marriage once as a result of climate shocks. Whilst, in households where male members migrate, women report increased exhaustion, poverty and hunger, and can face a greater risk of harassment and sexual and violent assault outside of their homes.
Women’s care burden is increased to provide for dependents when there is climate stress. For example, they might have to travel long distances to access water or skip meals in favour of others due to climate-related impacts such as prolonged drought. They also face a disproportionate amount of health-related loss and damage such as gynaecological issues caused by saltwater intrusion.
Women can also face loss and damage such as exposure to exploitation and abuse due to climate stress. For example, women and girls can be exposed to slavery, trafficking, forced labour and forced marriage once as a result of climate shocks. Whilst, in households where male members migrate, women report increased exhaustion, poverty and hunger, and can face a greater risk of harassment and sexual and violent assault outside of their homes.
Fridays For Future stage a school strike protest in Piccadilly Circus in London, UK, in March 2019. Image Credit: Lena Dobrowolska & Teo Ormond-Skeaping ©
Children and future generations
Children are often most affected by climate-related disasters through loss and damage such as malnutrition, missed school days and post-traumatic stress disorder.
For example, almost 93% of children who frequently face tidal foods in the Tirto Districts in Indonesia experience moderate anxiety, and 29% of them have mild depression. Children face a loss of education because of climate-related displacement in Urir Char, Bangladesh. Flooding has a range of impacts on children in Nepal where children have been forced into labour and into early marriage thereby denying them their childhood, their right to education, and affecting them mentally, physically, and socially.
Children also face a future of escalating loss and damage beyond the immediate impacts we are seeing now. The world they inherit is in a state of multiple intersecting social, political, economic, and environmental crises. Impacts from climate change are already beyond the limits to adaptation and this will worsen without transformational changes. Children alive today will never know a stable climate, their futures have been stolen by those most responsible for the climate crisis as result, many young people are experiencing ecological grief and eco-anxiety.
For example, almost 93% of children who frequently face tidal foods in the Tirto Districts in Indonesia experience moderate anxiety, and 29% of them have mild depression. Children face a loss of education because of climate-related displacement in Urir Char, Bangladesh. Flooding has a range of impacts on children in Nepal where children have been forced into labour and into early marriage thereby denying them their childhood, their right to education, and affecting them mentally, physically, and socially.
Children also face a future of escalating loss and damage beyond the immediate impacts we are seeing now. The world they inherit is in a state of multiple intersecting social, political, economic, and environmental crises. Impacts from climate change are already beyond the limits to adaptation and this will worsen without transformational changes. Children alive today will never know a stable climate, their futures have been stolen by those most responsible for the climate crisis as result, many young people are experiencing ecological grief and eco-anxiety.
6. Loss and Damage
in the Climate Negotiations?
in the Climate Negotiations?
Under the UNFCCC
Although the issue of Loss and Damage may have entered the media spotlight during COP 27 in Egypt in 2022, it has been a major concern of climate-vulnerable developing countries since the United Nations Framework Convention on Climate Change (UNFCCC) was agreed.
The UNFCCC was established in 1992 after the UN General Assembly recognized that loss and damage caused by the climate crisis represents a threat to humankind. While the UNFCCC was being negotiated, Vanuatu on behalf of the Alliance of Small Island States (AOSIS) submitted a proposal for a mechanism to address loss and damage from sea level rise in small island developing states (SIDS). This proposal did not move forward, though the UNFCCC does acknowledge the obligation of developed countries to support developing countries in their efforts to address climate change.
The UNFCCC was established in 1992 after the UN General Assembly recognized that loss and damage caused by the climate crisis represents a threat to humankind. While the UNFCCC was being negotiated, Vanuatu on behalf of the Alliance of Small Island States (AOSIS) submitted a proposal for a mechanism to address loss and damage from sea level rise in small island developing states (SIDS). This proposal did not move forward, though the UNFCCC does acknowledge the obligation of developed countries to support developing countries in their efforts to address climate change.
The UNFCCC was signed at the 1992 'Earth Summit' in Rio de Janeiro, Brazil. Image Credit: Photo: UN Photo/Michos Tzovaras
Initially, after it was established in 1992, the UNFCCC was focused on mitigation to reduce greenhouse gas levels in the atmosphere and limit climatic change to avoid loss and damage altogether. When it was clear those efforts were inadequate, developing countries advocated for more focus on adaptation. Eventually, it became clear that loss and damage from climate change would not be avoided and need to be addressed.
The Warsaw
International Mechanism
for loss and damage (WIM)
International Mechanism
for loss and damage (WIM)
In 2007 at COP 13 in Bali, the term “loss and damage” was first seen in a UNFCCC decision, driven by AOSIS and other vulnerable developing country Parties. In 2010 at COP 16 in Cancun, a work programme was established to increase the understanding of how to assess and address climate-related loss and damage. That led to the establishment of the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) with the objective of addressing loss and damage associated with the impacts of climate change, including extreme events and slow onset events in countries particularly vulnerable to the impacts of climate change.
"What my country is going through as a result of this extreme climate event is madness, the climate crisis is madness. We can stop this madness right here in Warsaw." Philippines lead negotiator Yeb Sano breaks down in tears whilst delivering a powerful speech about the loss and damage caused by super typhoon Haiyan. Image Credit: UNClimateChange
The WIM has three functions:
1. Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage;
2. Strengthening dialogue, coordination, coherence and synergies amongst relevant stakeholders; and
3. Enhancing action and support, including finance, technology and capacity building to address loss and damage.
The implementation of the functions of the WIM is guided by the Executive Committee (or ExCom) which includes ten individuals from developing countries and ten from developed countries. To ensure that loss and damage is adequately addressed, it is critical that there be more emphasis on the third function of the WIM: enhancing action and support.
1. Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage;
2. Strengthening dialogue, coordination, coherence and synergies amongst relevant stakeholders; and
3. Enhancing action and support, including finance, technology and capacity building to address loss and damage.
The implementation of the functions of the WIM is guided by the Executive Committee (or ExCom) which includes ten individuals from developing countries and ten from developed countries. To ensure that loss and damage is adequately addressed, it is critical that there be more emphasis on the third function of the WIM: enhancing action and support.
The Paris Agreement
In 2015 at COP 21 in Paris, Loss and Damage was included in a dedicated article in the Paris Agreement. This elevated Loss and Damage as the “third pillar” of climate policy under the UNFCCC alongside mitigation and adaptation. While it is important that Loss and Damage is recognized as separate from adaptation in the Paris Agreement the text includes a reference to “averting, minimising and addressing loss and damage”.
It is understood by civil society organisations that averting loss and damage is achieved through mitigation, whilst minimising loss and damage is achieved through adaptation. Since Loss and Damage is the third pillar of climate change policy alongside adaptation and mitigation, action on loss and damage must focus on addressing loss and damage. Within the negotiations, civil society organisations have identified that a focus on averting or minimising loss and damage is often used to distract from real action to address loss and damage.
It is understood by civil society organisations that averting loss and damage is achieved through mitigation, whilst minimising loss and damage is achieved through adaptation. Since Loss and Damage is the third pillar of climate change policy alongside adaptation and mitigation, action on loss and damage must focus on addressing loss and damage. Within the negotiations, civil society organisations have identified that a focus on averting or minimising loss and damage is often used to distract from real action to address loss and damage.
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Celebrations as the Paris Agreement is adopted at COP21. Image Credit: UNclimatechange
The Santiago Network for Loss and Damage
At COP 25 in Madrid in 2019, the WIM was reviewed and as developing countries had hoped, it was strengthened. The Santiago Network for averting, minimising, and addressing loss and damage (SNLD) was established as part of the WIM under the COP and the Conference of the Parties serving as the Meeting of the Parties to the Paris Agreement (CMA), the body which governs the implementation of the Paris Agreement.
At COP 26, Parties decided on the function of the Santiago Network which is to catalyse the technical assistance of organisations, bodies, networks and experts (OBNEs) for the implementation of relevant approaches at the local, national and regional level in developing countries that are particularly vulnerable to the adverse effects of climate change.
Then at COP 27, in Sharm El-Sheikh in November 2022, Parties adopted the terms of reference for the Santiago Network and established the Advisory Board of the Santiago Network.
More recently at COP 28, in December 2023, the United Nations Office for Disaster Risk Reduction (UNDRR) and the United Nations Office for Project Services (UNOPS) were selected as the host consortium of the Santiago Network’s secretariat.
At COP 26, Parties decided on the function of the Santiago Network which is to catalyse the technical assistance of organisations, bodies, networks and experts (OBNEs) for the implementation of relevant approaches at the local, national and regional level in developing countries that are particularly vulnerable to the adverse effects of climate change.
Then at COP 27, in Sharm El-Sheikh in November 2022, Parties adopted the terms of reference for the Santiago Network and established the Advisory Board of the Santiago Network.
More recently at COP 28, in December 2023, the United Nations Office for Disaster Risk Reduction (UNDRR) and the United Nations Office for Project Services (UNOPS) were selected as the host consortium of the Santiago Network’s secretariat.
Delegates celebrate as the text on the Santiago Network is agreed at COP27. Image credit: Kate Raffety / Loss and Damage Collaboration, Copyright 2022 ©.
The Advisory Board of the Santiago Network
The composition of the Advisory Board includes twelve nominations from Parties, two from each of the five recognized United Nations regional groups and one member each from the Least Developed Countries (LDCs) and Small Island Developing States (SIDS). It also includes two nominations from members of the Executive Committee of the Warsaw International Mechanism for Loss and Damage (WIM ExCom) and three nominations from observer representatives which in this case includes representatives from the UNFCCC Youth (YOUNGO), Indigenous Peoples and Women and Gender (WGC) Constituencies.
In 2024 the Advisory Board of the Santiago Network met three times following the election of Advisory Board members. Throughout its meetings in 2024 the Advisory Board has worked towards the full operationalisation of the Santiago Network by putting in place the policies and procedures needed to receive and respond to requests for technical assistance, and invite OBNEs to become members.
At its first meeting in Geneva, Switzerland, between the 18th and 20th of March the Advisory Board selected Geneva as the host of the headquarters of the secretariat of the Santiago Network and shortly after the meeting we saw the launch of the official website of the Santiago Network.
Following the third meeting of the Advisory Board it was announced that the executive Director of the Santiago Network had been selected. The first inaugural Executive Director of the Santiago Network is Carolina Fuentes Castellanos.
In 2024 the Advisory Board of the Santiago Network met three times following the election of Advisory Board members. Throughout its meetings in 2024 the Advisory Board has worked towards the full operationalisation of the Santiago Network by putting in place the policies and procedures needed to receive and respond to requests for technical assistance, and invite OBNEs to become members.
At its first meeting in Geneva, Switzerland, between the 18th and 20th of March the Advisory Board selected Geneva as the host of the headquarters of the secretariat of the Santiago Network and shortly after the meeting we saw the launch of the official website of the Santiago Network.
Following the third meeting of the Advisory Board it was announced that the executive Director of the Santiago Network had been selected. The first inaugural Executive Director of the Santiago Network is Carolina Fuentes Castellanos.
Group photo of members of the Advisory Board who were present in person for the first meeting along with representatives of the joint UNDRR-UNOPS secretariat. Image Credit: UNDRR
What technical assistance will the Santiago Network provide?
Requests for technical assistance should address regional, national and/or local technical assistance needs, priorities and challenges, including those of vulnerable groups and communities, through an inclusive and country-driven process, taking into account the needs of vulnerable people, Indigenous Peoples, and local communities, including children, youth, women, etc.
This might include support to develop policies or undertake assessments, for example to develop a national loss and damage plan, make a request to the Fund for Responding to Loss and Damage, undertake a loss and damage needs assessment or address a specific type of loss and damage.
This might include support to develop policies or undertake assessments, for example to develop a national loss and damage plan, make a request to the Fund for Responding to Loss and Damage, undertake a loss and damage needs assessment or address a specific type of loss and damage.
The Santigo Network would bring technical assistance —in the form of local and regional expertise— to counties and communities impacted by loss and damage to guide actions to address it. Image credit: Alice Plate/UNDP Papua New Guinea
How does the Santiago Network catalyse technical assistance?
To receive technical assistance developing countries and the communities within them are invited to submit a request to the Santiago Network. Once the request is received the Santiago Network works to actively connect those seeking technical assistance with OBNEs best suited to provide the assistance. Financial support for the ONBEs to provide the technical assistance will then be provided through the Santiago network, subject to a review against agreed criteria managed by the Santiago Network secretariat.
How do OBNEs join the
Santiago Network?
Santiago Network?
The Santiago network will receive expressions of interest for membership to the network on a rolling basis. Organizations, bodies, networks and experts that can become members of the Santiago Network are defined as:
Organizations: independent legal entities.
Bodies: groups that are not necessarily independent legal entities.
Networks: interconnected groups of organizations or individuals that collaborate, share resources, or coordinate activities to achieve common goals. These networks can vary in structure, purpose, and scope but do not necessarily have legally established arrangements such as consortiums.
Experts: individuals who are recognized specialists in a specific field.
With potential members needing to meet the following three criteria to join the Santiago network:
Criteria 1: Proven expertise in topics relevant to averting, minimizing and addressing loss and damage
Criteria 2: Demonstrated experience in providing technical assistance in topics relevant to averting, minimizing and addressing loss and damage.
Criteria 3: Commitments, including adhering to the conflict of interest guidelines of the Santiago Network and appropriate environmental and social safeguards.
Organizations: independent legal entities.
Bodies: groups that are not necessarily independent legal entities.
Networks: interconnected groups of organizations or individuals that collaborate, share resources, or coordinate activities to achieve common goals. These networks can vary in structure, purpose, and scope but do not necessarily have legally established arrangements such as consortiums.
Experts: individuals who are recognized specialists in a specific field.
With potential members needing to meet the following three criteria to join the Santiago network:
Criteria 1: Proven expertise in topics relevant to averting, minimizing and addressing loss and damage
Criteria 2: Demonstrated experience in providing technical assistance in topics relevant to averting, minimizing and addressing loss and damage.
Criteria 3: Commitments, including adhering to the conflict of interest guidelines of the Santiago Network and appropriate environmental and social safeguards.
A survey team from The Pacific Community (SPC) conducting post-tropical cyclone Harold building damage assessment in Kadavu, Fiji, in collaboration with the Fiji Meteorological Department. In April 2020, Tropical Cyclone Harold slammed into the Pacific causing widespread loss and damage across the region. Harold impacted four countries including the Solomon Islands, Fiji, Vanuatu, and Tonga. Image credit: The Pacific Community (SPC) / FlickR, licensed under (CC BY-NC-ND 2.0).
The Glasgow Dialogue on Loss and Damage
At COP26 in Glasgow, Loss and Damage emerged as a key negotiation item and united the voices of all developing countries. The G77 and China, a negotiating bloc representing 6 in every 7 people on earth, pushed for Loss and Damage to be at the forefront of negotiations by proposing a “Glasgow Loss and Damage Finance Facility” but as the COP neared its conclusion the proposition was blocked by developed countries.
As a minimum compromise, the COP/CMA decided to establish the Glasgow Dialogue on Loss and Damage “between Parties, relevant organisations and stakeholders to discuss the arrangements for the funding of activities to avert, minimise and address loss and damage associated with the adverse impacts of climate change, to take place in the first sessional period of each year of the Subsidiary Body for Implementation, concluding at its sixtieth session (June 2024)”.
As a minimum compromise, the COP/CMA decided to establish the Glasgow Dialogue on Loss and Damage “between Parties, relevant organisations and stakeholders to discuss the arrangements for the funding of activities to avert, minimise and address loss and damage associated with the adverse impacts of climate change, to take place in the first sessional period of each year of the Subsidiary Body for Implementation, concluding at its sixtieth session (June 2024)”.
At the 2022 Bonn Climate Conference (SB56), Climate Action Network International (CAN) lead civil society organisations in demanding that the Glasgow Dialogue results in the delivery of finance to address loss and damage at COP 27. Image credit: Climate Action Network International (CAN).
However, the Glasgow Dialogue decision made at COP26 didn’t include a mandated outcome or any guidance for its structure, something which risked turning the Dialogue into a “talk shop”, a criticism made by developing countries of a previous dialogue, the Suva Expert Dialogue, which took place in 2018 with the intention of informing a technical paper that would make up part of a review of the WIM in 2019. (The COP27 decision has since enhanced the Glasgow Dialogue, see the Transitional Committee section for further information).
The Loss and Damage
agenda item
agenda item
In the lead-up to COP 27 developing countries and civil society highlighted the need for a formal agenda item to negotiate finance for Loss and Damage at the COP. This came about after a proposal from the G77 and China to launch a loss and damage finance facility at COP 26 was rejected, and there was disappointment with the lack of a concrete outcome on the Glasgow Dialogue at SB56.
At SB56 in June 2022, the G77 and China proposed that the agenda item “matters relating to funding arrangements for addressing loss and damage” under “matters relating to finance” be put on both the COP and Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) agendas.
Due to the rules of procedure, the sub-agenda item was reflected on the provisional agendas of both the COP and CMA. However, it was uncertain whether the sub-agenda item would be included in the official agenda adopted at the start of COP 27.
At SB56 in June 2022, the G77 and China proposed that the agenda item “matters relating to funding arrangements for addressing loss and damage” under “matters relating to finance” be put on both the COP and Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) agendas.
Due to the rules of procedure, the sub-agenda item was reflected on the provisional agendas of both the COP and CMA. However, it was uncertain whether the sub-agenda item would be included in the official agenda adopted at the start of COP 27.
Egyptian COP 27 President Sameh Shoukry welcomes the announcement that Loss and Damage will be on the COP27 agenda under sub-agenda item "8f Matters relating to finance". Image Credit: UNclimatechange
In the days preceding the official start of COP 27 Parties worked through the night to reach an agreement on how the official agenda item would be framed. The agenda item under “8f. Matters relating to finance” was formally adopted on the first day of COP 27, however, it contained weaker language on addressing loss and damage.
The COP 27 8f Loss and Damage agenda item. Image Credit: Image Credit: UNclimatechange
The 8f Loss and Damage agenda item creates a mandate for a Transitional Committee to operationalise the new funding arrangements including a fund, with its work to conclude with the adoption no later than at COP 28 and CMA 5 of a decision(s). It will be a matter for Parties how and if they continue the work on loss and damage finance under this agenda item.
The Loss and Damage Fund
After many long nights of ministerial consultations and bilateral meetings, Parties agreed to establish a Loss and Damage Fund at COP27 on Saturday the 19 of November 2022. This historic decision came after three decades of multilateral processes had failed to deliver a fund for loss and damage and was made possible because of the unity of the G77 and China negotiating block.
Egyptian COP 27 President Sameh Shoukry gavels the Loss and Damage Fund into existence during the closing plenary of COP27. Image Credit: UNClimateChange
The adopted decision under the new agenda item established:
1. New funding arrangements to assist developing countries…in responding to loss and damage, including with a focus on addressing loss and damage;
2. A fund for responding to loss and damage whose mandate includes a focus on addressing loss and damage; and;
3. A Transitional Committee to continue the work of operationalising the Fund in the run-up to COP28.
Arguably the value of this decision is in the political signal it sends to the world acknowledging the need for finance for Loss and Damage and establishing a Fund for that purpose.
1. New funding arrangements to assist developing countries…in responding to loss and damage, including with a focus on addressing loss and damage;
2. A fund for responding to loss and damage whose mandate includes a focus on addressing loss and damage; and;
3. A Transitional Committee to continue the work of operationalising the Fund in the run-up to COP28.
Arguably the value of this decision is in the political signal it sends to the world acknowledging the need for finance for Loss and Damage and establishing a Fund for that purpose.
H.E Sherry Rehman, minister of climate change for Pakistan, make it clear that the G77 and China are unwavering on their demands for a Loss and Damage Fund at COP 27during a press conference on the 17th of November 2022. Image Credit: Loss and Damage Collaboration, Copyright 2022 ©.
However, the decision made at COP 27 did not specify where the Fund will be located, be it under the UNFCCC or under the Paris Agreement, and although it recalls the UNFCCC agreement made in 1992, it did not explicitly note that the Fund is subject to the principles of equity, Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC), and historical responsibility.
Whilst the decision did not explicitly provide all the aspects the G77 and China asked for, it left the door open for much to be decided in the coming years.
Whilst the decision did not explicitly provide all the aspects the G77 and China asked for, it left the door open for much to be decided in the coming years.
The Transitional Committee of the Loss and Damage Fund
The Transitional Committee of the Loss and Damage Fund was established to undertake work in between COP 27 and to COP 28 and to make recommendations for the operationalisation of the funding arrangements and the Fund. The committee was made up of 24 members, comprising of 10 members from developed country Parties and 14 members from developing country Parties.
The Transitional Committee considered the “institutional arrangements, modalities, structure, governance and terms of reference of the fund”, and “elements of the new funding arrangements’’, among other things with the task of making recommendations to the COP 28 presidency which will form the basis of a decision by Parties to operationalise the Fund.
The Transitional Committee considered the “institutional arrangements, modalities, structure, governance and terms of reference of the fund”, and “elements of the new funding arrangements’’, among other things with the task of making recommendations to the COP 28 presidency which will form the basis of a decision by Parties to operationalise the Fund.
Members of the Transitional Committee for the Loss and Damage Fund and Funding Arrangements at their first meeting in Luxor, Egypt, between 27-29 March 2023 Image Credit: UNClimateChange
The Transitional Committee met for the first time from the 27–29 of March in Luxor, Egypt. During the first meeting (TC1), Committee members elected two co-chairs, Outi Honkatukia of Finland and Richard Sherman of South Africa and agreed upon the work plan for the Committee. The work plan included four Transitional Committee meetings, two accompanying workshops, and submissions open to observers due before each meeting.
However, due to strong divergence on many aspects of the Fund and its governing instrument, including what type of loss and damage the Fund would cover (scope), the amount of money the Fund should program (scale), where the money would come from to fill the Fund (sources of finance), which countries would be able to access the Fund (eligibility), and whether the Fund would be an operating entity of the Financial Mechanism of the UNFCCC, the Transitional Committee required five meetings to agree on a set of recommendations to transmit to the COP 28 presidency. When an agreement was finally reached at the fifth and final meeting (TC5) in Abu Dhabi in early November 2023, it was decided that if it meets a set of criteria, the World Bank will become the interim host of the Loss and Damage Fund.
However, due to strong divergence on many aspects of the Fund and its governing instrument, including what type of loss and damage the Fund would cover (scope), the amount of money the Fund should program (scale), where the money would come from to fill the Fund (sources of finance), which countries would be able to access the Fund (eligibility), and whether the Fund would be an operating entity of the Financial Mechanism of the UNFCCC, the Transitional Committee required five meetings to agree on a set of recommendations to transmit to the COP 28 presidency. When an agreement was finally reached at the fifth and final meeting (TC5) in Abu Dhabi in early November 2023, it was decided that if it meets a set of criteria, the World Bank will become the interim host of the Loss and Damage Fund.
Reacting to the lack of obligations for developed countries to pay their fair share into the Loss and Damage Fund in the penultimate draft text of the recommendations that the Transitional Committee would send to COP28 from TC5, Avinash Persaud of Barbados makes it clear that developing countries did not want to accept a retreat to voluntarism where developed countries are only "urged" to provide Loss and Damage Finance. Image Credit: UNClimateChange
The agreement reached at TC5 was considered to be a fragile and delicate compromise around eligibility, scope and responsibility reflecting the many compromises that TC members had made to reach an agreement, including on sources of finance —developed countries are only required to make voluntary contributions to the Fund— and on the hosting arrangements— the World Bank becoming the interim host of the Fund’s Secretariat. Until a compromise was reached at TC5, developing countries had been adamant that the Fund must be a stand-alone fund that is an operating entity of the financial mechanism of the UNFCCC. Raising serious concerns, developing countries —alongside civil society— had highlighted many issues, including the culture of the World Bank —which favours loans and not grants— its high administrative fees and the Bank’s current policies which would prevent it from providing direct access to the Loss and Damage Fund to countries and communities. Therefore, concerns remain about whether the World Bank will in fact be able to meet the criteria needed for it to become the interim host of the Loss and Damage Fund, and more importantly, whether a Fund under the Wold Bank will be able to meet the loss and damage needs of developing countries.
The Operationalisation of the Loss and Damage Fund and US$ 700 Million in Pledges
The recommendations agreed at TC5 were adopted without any further deliberation when the Loss and Damage Fund was operationalised during the opening ceremony of COP 28 following an unprecedented move by the COP 28 presidency. Shortly afterwards, Loss and Damage pledges were announced by a number of Parties including US$ 100 million from the COP 28 Presidency on behalf of the United Arab Emirates, 100€ million Euro from Germany, and a number of smaller pledges from the UK, US, and Japan. Later in week one of COP28, France and Italy would both pledge US$ 108 million. In total, just over US$ 700 million would be pledged during COP28.
The operationalisation of the Loss and Damage Fund is celebrated by UNFCCC Executive Secretary Simon Stiell, the COP28 President Dr. Sultan al-Jaber, and others, and during the opening plenary of COP 28. Image credit: UNFCCC / UN Climate Change. Image Credit: UNClimateChange
Although very welcome, the $700 million USD pledged at COP28 is just a drop in the ocean compared to what developing countries actually need to address loss and damage each year which is estimated to be US$ 400 billion a year throughout the 2020s. For example, in 2022 alone, the quantifiable economic cost in developing countries of extreme events like cyclones and floods was greater than US$ 100 billion. A number which does not include more difficult-to-quantify extreme events like heat waves, nor slow onset events like rising sea levels or non-economic loss and damage like loss of education during a climate disaster or loss of culture. It is also important to recognise that during TC3 developing countries identified that they expect the Fund to be able to program US$ 100 billion a year. With this in mind, the US$ 700 million USD pledged at COP28 would account for less than 1% of what developing countries expect (US$ 100 billion) and only 0.2% of the actual needs of developing countries (US$ 400 billion).
The World Bank as Interim Host of the Loss and Damage Fund
The COP 28 decision to operationalize the Loss and Damage Fund states that the Fund will have the World Bank as an interim host for four years. To become the interim host, the World Bank must promptly operationalize the Fund as a Financial Intermediary Fund (FIF) and submit to the Board of the Fund no later than eight months after the conclusion of COP28 (by 13th August 2024). However, there are a number of conditions —set out in paragraph 20 of the governing instrument of the Loss and Damage Fund— which the World Bank must meet. Amongst other things, the criteria includes ensuring that developing countries will have directly access resources from the Fund and that the Fund is able to establish and utilise its own eligibility criteria for who will be able to receive support from the Fund.
The World Bank Group Headquarters in Washington DC during the Annual Meetings in October 2019. Image credit: World Bank / Grant Ellis Image, licenced under a CC BY-NC-ND 2.0 DEED licence.
In addition to the criteria set out in paragraph 20, the World Bank will also need to pass the following three “tests” laid out in paragraphs 21-24 of the governing instrument. The first two tests were to determine if the Bank could become the interim host (these have been passed in 2024). They are:
1. The World Bank confirming that it is willing to host the Loss and Damage Fund as a FIF with the conditions set out in paragraph 20 within 6 months of COP28 (by 13th of June 2024). If the Bank was not willing, then the Board would have instructed the Conference of the Parties (COP) and the Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) to operationalize the Fund as an independent stand-alone institution. If yes, the Bank had to provide FIF documentation within eight months of COP28 (by 13th August 2024).
2. Following a review, the Board of the Fund needed to confirm if the FIF documentation for the Fund could meet the conditions set out in paragraph 20 within the interim period. If it could not, then the Board would have instructed the COP and CMA to operationalize the Fund as an independent stand-alone institution. If the FIF documentation could meet the conditions the World Bank will become the interim host.
Whilst, the third test will determine whether the bank will continue to host the Fund once the interim hosting period is up:
3. An independent assessment of the performance of the World Bank as host of the Fund’s Secretariat during the four-year interim period will take place. If the Bank has not performed well, the COP and CMA will take steps to operationalize the Fund as an independent stand-alone institution. If the conditions have been met by the World Bank —as determined by the Board— and performance is deemed adequate, the COP and CMA will end the interim period and the Bank will continue to be host — with or without conditions.
1. The World Bank confirming that it is willing to host the Loss and Damage Fund as a FIF with the conditions set out in paragraph 20 within 6 months of COP28 (by 13th of June 2024). If the Bank was not willing, then the Board would have instructed the Conference of the Parties (COP) and the Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) to operationalize the Fund as an independent stand-alone institution. If yes, the Bank had to provide FIF documentation within eight months of COP28 (by 13th August 2024).
2. Following a review, the Board of the Fund needed to confirm if the FIF documentation for the Fund could meet the conditions set out in paragraph 20 within the interim period. If it could not, then the Board would have instructed the COP and CMA to operationalize the Fund as an independent stand-alone institution. If the FIF documentation could meet the conditions the World Bank will become the interim host.
Whilst, the third test will determine whether the bank will continue to host the Fund once the interim hosting period is up:
3. An independent assessment of the performance of the World Bank as host of the Fund’s Secretariat during the four-year interim period will take place. If the Bank has not performed well, the COP and CMA will take steps to operationalize the Fund as an independent stand-alone institution. If the conditions have been met by the World Bank —as determined by the Board— and performance is deemed adequate, the COP and CMA will end the interim period and the Bank will continue to be host — with or without conditions.
The Board of the
Loss and Damage Fund
Loss and Damage Fund
With the operationalisation of the Loss and Damage Fund came the establishment of the Board of the Loss and Damage Fund. The Board, which is tasked with creating a system for allocating resources from the Fund —amongst other things— will be composed of 26 members —14 from developing countries and 12 from developed countries. Developing country nominations will see three nominations each from the Asia-Pacific, Africa, Latin American and the Caribbean UN Regional Groups, and two each from Small Developing Island States (SIDS) and Least Developed Countries (LDCs). There will also be one nomination from another developing nation not in these categories and each Board member will have an alternate member.
Nominations to the Board of the Loss and Damage Fund were encouraged by the 9th of December 2023, yet by the deadline for the first Board meeting —the 31st of January 2024— only developing countries had made their nominations and it was not until the beginning of March 2024 that developed countries finally made theirs. As a result the first Board meeting was delayed until the 30th of April.
Nominations to the Board of the Loss and Damage Fund were encouraged by the 9th of December 2023, yet by the deadline for the first Board meeting —the 31st of January 2024— only developing countries had made their nominations and it was not until the beginning of March 2024 that developed countries finally made theirs. As a result the first Board meeting was delayed until the 30th of April.
The Board meets for the first time In Abu Dhabi in the United Arab Emirates. Here them members of the Board are joined by the COP 28 President, Sultan Al Jaber. Image credit: COP 28 UAE
In 2024 the Board of the Fund held four meetings in total. The first in Abu Dhabi in the United Arab Emirates in April, the second in Incheon in the Republic of Korea, the third in Baku, Azerbaijan and in the fourth in Manila in the Philippines. During these first four meetings the Board completed key milestones mandated under the decisions from COP 28 and CMA 5 operationalising the Fund including:
• Selecting the Fund’s first Executive Director Ibrahima Cheikh Diong of Senegal and the USA;
• Selecting the host country for the Board: Republic of the Philippines Philippines;
• Entering into a hosting arrangement with the World Bank as interim trustee and host of the Fund’s secretariat; and;
• Inviting the World Bank, subject to the conditions set out in the COP 28/CMA 5 decisions, to operationalise the Fund as a World Bank-hosted Financial Intermediary Fund (FIF). Other decisions adopted by the Board in 2024, included electing Richard Sherman of South Africa and Jean-Christophe Donnellier as Co-Chairs of the Board for a term of one year, a work plan for the Board in its first year, agreeing on arrangements for establishing and operationalizing the Annual High-Level Dialogue on complementarity and coherence, adopting the additional rules of procedure for the Board, the travel policy for the Board and an interim accreditation process for Active Observers to the Board.
• Selecting the Fund’s first Executive Director Ibrahima Cheikh Diong of Senegal and the USA;
• Selecting the host country for the Board: Republic of the Philippines Philippines;
• Entering into a hosting arrangement with the World Bank as interim trustee and host of the Fund’s secretariat; and;
• Inviting the World Bank, subject to the conditions set out in the COP 28/CMA 5 decisions, to operationalise the Fund as a World Bank-hosted Financial Intermediary Fund (FIF). Other decisions adopted by the Board in 2024, included electing Richard Sherman of South Africa and Jean-Christophe Donnellier as Co-Chairs of the Board for a term of one year, a work plan for the Board in its first year, agreeing on arrangements for establishing and operationalizing the Annual High-Level Dialogue on complementarity and coherence, adopting the additional rules of procedure for the Board, the travel policy for the Board and an interim accreditation process for Active Observers to the Board.
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The new Executive Director of the Fund for Responding to Loss and Damage, Ibrahima Cheikh Diong at COP29 in Baku, Azerbaijan on November 12, 2024 . Image credit: IISD/ENB | Mike Muzurakis.
Importantly the Board also developed and adopted the first Secretariat administrative budget with the new Executive Director and a six months work plan to transition the Secretariat from Interim Secretariat to a new, dedicated Independent Secretariat. As well as a roadmap to start up the Fund with the view to be in a position to support developing countries “soon” (hopefully this will be towards the end of 2025) with initial interventions in line with a bottom-up country lead approach.
The Board also made a decision on the name of the Fund, with the Board deciding that the Fund should be called the Fund for responding to Loss and Damage in line with the COP28/CMA 5 decision and that the acronym should be “FRLD”.
Additionally at COP29, two further decisions were taken in relation to the Fund. The first on the inaugural report of the Board of the Fund to the COP and CMA. This saw the report considered by Parties and the recommendations to the Board adopted. Whilst the second decision saw the and the arrangements between the Conference of the Parties of the UNFCCC (COP), the Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) and the Board of the Fund for Responding to Loss and Damage agreed. See the COP decision here, see the CMA decision here.
The Board also made a decision on the name of the Fund, with the Board deciding that the Fund should be called the Fund for responding to Loss and Damage in line with the COP28/CMA 5 decision and that the acronym should be “FRLD”.
Additionally at COP29, two further decisions were taken in relation to the Fund. The first on the inaugural report of the Board of the Fund to the COP and CMA. This saw the report considered by Parties and the recommendations to the Board adopted. Whilst the second decision saw the and the arrangements between the Conference of the Parties of the UNFCCC (COP), the Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) and the Board of the Fund for Responding to Loss and Damage agreed. See the COP decision here, see the CMA decision here.
COP 29 Presidency signing ceremony, “From Pledges to Action: Full Operationalization of the Fund for Responding to Loss and Damage”, in Baku, Azerbaijan, November 12, 2024. Image credit: IISD/ENB | Mike Muzurakis.
We also saw the signing of three key documents related to the Fund during the COP 29 Presidency’s signing ceremony, “From Pledges to Action: Full Operationalization of the Fund for Responding to Loss and Damage”. These documents were:
• Secretariat Hosting Agreement between the Board of the Fund and the World Bank: This signals the start of the four-year interim hosting period of the Fund as a World Bank Financial Intermediary Fund (FIF).
• Trustee Agreement between the Board of the Fund and the World Bank: The terms and conditions for the administration of the trust fund for the Fund for Responding to Loss and Damage (i.e. the bank account where the money pledged to the Fund will be held).
• Host Country Agreement: Between the Board of the Fund and the Board’s host country the Republic of the Philippines.
• Secretariat Hosting Agreement between the Board of the Fund and the World Bank: This signals the start of the four-year interim hosting period of the Fund as a World Bank Financial Intermediary Fund (FIF).
• Trustee Agreement between the Board of the Fund and the World Bank: The terms and conditions for the administration of the trust fund for the Fund for Responding to Loss and Damage (i.e. the bank account where the money pledged to the Fund will be held).
• Host Country Agreement: Between the Board of the Fund and the Board’s host country the Republic of the Philippines.
UN Secretary-General António Guterres addressing the High-Level Dialogue on Loss and Damage at COP29 in Baku, Azerbaijan. Image credit: UNFCCC / Kiara Worth
COP 29 also saw the launch of the Annual High-Level Dialogue on complementarity and coherence co-convened by the Fund for Responding to Loss and Damage and the United Nations Secretary-General (UNSG). During which the UNSG made opening remarks underscoring that the Fund’s “initial capitalisation of US$ 700 million doesn’t come close to righting the wrong inflicted on the vulnerable.” and pointed to the need for countries to commit new finance to the Fund and that “we need to implement solidarity levies on sectors such as shipping, aviation, and fossil fuel extraction —to help fund climate action.”
The Board of the
Fund for Responding to
Loss and Damage in 2025
Fund for Responding to
Loss and Damage in 2025
In 2025 the Board will hold three meetings. The Fifth Board meeting will take place from the 8–10 of April 2025 in Barbados, the sixth meeting from the 9–11 July 2025 in the Philippines and the seventh from the 8–10 Oct 2025 will also take place in the Philippines. The first Annual High Level Dialogue will also take place alongside the IMF / World Bank Spring meetings between the 25 – 27 of April, 2025 in Washington, D.C in the United States.
Key items that we expect to be on the agenda for the firth Board meeting include:
Access: how will countries and communities access support from the Fund);
Allocation: how will money be allocated for different types of loss and damage, how will the fund meet the needs and priorities of all developing countries, and how will minimum allocations be made for SIDS and LDCs. (Note that developed countries want to “prioritise” LDCs and SIDS as a way to exclude developing countries with larger economies. This would mean that countries like Pakistan who faced devastating floods in 2022 would not be able to access support.)
Updates on Plans for Early Interventions and Bottom Up Approaches: Updates from the Executive Director and the Secretariat on plans for initial interventions, recruitment of a Deputy Executive Director etc.
Key items that we expect to be on the agenda for the firth Board meeting include:
Access: how will countries and communities access support from the Fund);
Allocation: how will money be allocated for different types of loss and damage, how will the fund meet the needs and priorities of all developing countries, and how will minimum allocations be made for SIDS and LDCs. (Note that developed countries want to “prioritise” LDCs and SIDS as a way to exclude developing countries with larger economies. This would mean that countries like Pakistan who faced devastating floods in 2022 would not be able to access support.)
Updates on Plans for Early Interventions and Bottom Up Approaches: Updates from the Executive Director and the Secretariat on plans for initial interventions, recruitment of a Deputy Executive Director etc.
How much money has been pledged to the Fund for Responding to Loss and Damage and is it enough?
The status of resources document developed for the fourth meeting of the Board of the Fund for Responding to Loss and Damage shows that as of the 2nd of December 2024, the total amount pledged to the Fund is US$ 749.25 million, whilst the total amount paid into the Fund is just US$ 68.95 million.
The document also shows that only 7 of 26 countries and regions that have pledged to the Fund have signed contribution agreements turning their pledges (which are promises to pay) into commitments to pay into the Fund. Whilst 9 further countries have drafted agreements and 9 have not yet started. The signed agreements are valued at US$ 191.98 million.
The payment schedule in the document indicates that a further US$ 70.21 million is expected to be received by the Fund in December 2024, and that only US$ 52.82 million is expected in 2025. This will bring the total paid into the US$ 191.98 million leaving US$ 557.27 of the US$ 749.25 million unaccounted for.
Why is this problematic? Without clear timelines for when the contributions will be paid in, the Secretariat of the Fund will have a hard time planning which will impact early interventions in 2025–2026.
Furthermore, even if all of the US$ 749.25 million pledged to the Fund was paid in 2024, this is still just 0.2% of the US$ 400 billion needed by developing countries each year to address loss and damage —a recent paper has highlighted that Loss and Damage needs of developing countries will be US$ 395 billion in 2025.
This illustrates why putting a resource mobilisation strategy for the Fund in place is so critical especially in light of the totally inadequate decision on the New Collective Quantified Goal on Climate Finance (NCQG) at COP29 which failed to deliver finance to address loss and damage. Going forward, the World Bank has indicated that it will be using this webpage to share updates on the status of resources for the Fund and that this page will be updated ahead of each Board meeting.
The document also shows that only 7 of 26 countries and regions that have pledged to the Fund have signed contribution agreements turning their pledges (which are promises to pay) into commitments to pay into the Fund. Whilst 9 further countries have drafted agreements and 9 have not yet started. The signed agreements are valued at US$ 191.98 million.
The payment schedule in the document indicates that a further US$ 70.21 million is expected to be received by the Fund in December 2024, and that only US$ 52.82 million is expected in 2025. This will bring the total paid into the US$ 191.98 million leaving US$ 557.27 of the US$ 749.25 million unaccounted for.
Why is this problematic? Without clear timelines for when the contributions will be paid in, the Secretariat of the Fund will have a hard time planning which will impact early interventions in 2025–2026.
Furthermore, even if all of the US$ 749.25 million pledged to the Fund was paid in 2024, this is still just 0.2% of the US$ 400 billion needed by developing countries each year to address loss and damage —a recent paper has highlighted that Loss and Damage needs of developing countries will be US$ 395 billion in 2025.
This illustrates why putting a resource mobilisation strategy for the Fund in place is so critical especially in light of the totally inadequate decision on the New Collective Quantified Goal on Climate Finance (NCQG) at COP29 which failed to deliver finance to address loss and damage. Going forward, the World Bank has indicated that it will be using this webpage to share updates on the status of resources for the Fund and that this page will be updated ahead of each Board meeting.
7. What possible sources of Loss
and Damage
Funding are there?
and Damage
Funding are there?
The scale of the needs
The economic costs of loss and damage in developing countries alone have been projected to be between 290 billion USD and 580 billion USD by 2030. Yet this is likely a vast underestimation given the setbacks in development brought about by the COVID-19 pandemic and does not take into account the non-economic loss and damage that is already being caused by the climate crisis.
To address loss and damage and achieve climate justice, finance for Loss and Damage must be provided at the scale of the needs, delivered as grants and not as debt-inducing loans, and come from sustainable and reliable funding sources.
But where in this time of poly-crisis, which encompasses the climate crisis, a cost of living crisis, the war in Ukraine, growing inequality, rising geopolitical tensions and much more, will the money come from?
To address loss and damage and achieve climate justice, finance for Loss and Damage must be provided at the scale of the needs, delivered as grants and not as debt-inducing loans, and come from sustainable and reliable funding sources.
But where in this time of poly-crisis, which encompasses the climate crisis, a cost of living crisis, the war in Ukraine, growing inequality, rising geopolitical tensions and much more, will the money come from?
Women wade through floodwaters as they take refuge in Shikarpur district of Sindh Province, of Pakistan following the deviation caused by the 2022 Pakistan Floods which affected more that 33 million people. Image credit: Fareed Khan/AP/Shutterstock
Inside the UNFCCC
Once the operationalisation of the Loss and Damage Fund is complete the next task will be to fill it with funds.
Under the UNFCCC, the Loss and Damage Fund should be connected to the New Collective Quantified Goal (NCQG) on climate finance which will set a new global climate finance goal by 2024, covering mitigation and adaptation, and it will be crucial for this goal to also cover Loss and Damage since the current goal does not. By doing so, Parties recognised by the UNFCCC as the most responsible for the climate crisis would provide predictable, and new and additional finance to address loss and damage.
It is important to note that the Loss and Damage Fund will tackle the gaps that current climate finance institutions such as the Green Climate Fund (GCF) and humanitarian assistance —such as the kind provided by the Red Cross and Red Crescent— do not fill on Loss and Damage. The current international climate finance system is already stretched to breaking point due to insufficient funds, lack of political will and poor quality climate finance that indebts countries.
The COP 27 outcome highlights the link between indebtedness and the amount of loss and damage incurred (see page 4 para 23), so it is crucial that both the Loss and Damage Fund and the NCQG prioritize grants over loans. It is also essential that the UNFCCC operational definition on climate finance reflects the need for international climate finance to also cover loss and damage, to ensure that current funding gaps for loss and damage are addressed.
Under the UNFCCC, the Loss and Damage Fund should be connected to the New Collective Quantified Goal (NCQG) on climate finance which will set a new global climate finance goal by 2024, covering mitigation and adaptation, and it will be crucial for this goal to also cover Loss and Damage since the current goal does not. By doing so, Parties recognised by the UNFCCC as the most responsible for the climate crisis would provide predictable, and new and additional finance to address loss and damage.
It is important to note that the Loss and Damage Fund will tackle the gaps that current climate finance institutions such as the Green Climate Fund (GCF) and humanitarian assistance —such as the kind provided by the Red Cross and Red Crescent— do not fill on Loss and Damage. The current international climate finance system is already stretched to breaking point due to insufficient funds, lack of political will and poor quality climate finance that indebts countries.
The COP 27 outcome highlights the link between indebtedness and the amount of loss and damage incurred (see page 4 para 23), so it is crucial that both the Loss and Damage Fund and the NCQG prioritize grants over loans. It is also essential that the UNFCCC operational definition on climate finance reflects the need for international climate finance to also cover loss and damage, to ensure that current funding gaps for loss and damage are addressed.
Workers sleep in the shade of a tree on a hot summer afternoon in Lucknow in the central Indian state of Uttar Pradesh on April 28, 2022. Severe heat wave conditions swept north and western parts of India. Image Credit: Rajesh Kumar Singh/AP, All Rights Reserved © 2022.
Outside the UNFCCC
Many civil society actors and the UN Secretary-General António Guterres, have called for windfall taxes on the profits of fossil fuel companies and for the money generated to be diverted to people struggling with rising food and energy prices and to those facing loss and damage caused by the climate crisis.
Other innovative sources of finance to address loss and damage could include a modest international air passenger levy, taxes on wealth ownership, a maritime shipping levy, a financial transaction tax, a bunker fuel tax, carbon pricing and further direct contributions from governments and regions such as the pledges seen at COP 26 and 27 from Scotland, Wallonia, and Denmark.
Other innovative sources of finance to address loss and damage could include a modest international air passenger levy, taxes on wealth ownership, a maritime shipping levy, a financial transaction tax, a bunker fuel tax, carbon pricing and further direct contributions from governments and regions such as the pledges seen at COP 26 and 27 from Scotland, Wallonia, and Denmark.
A coal fired power plant in the USA releases emissions. The Pollute Pays Principal and the principal of Common But Differentiated Responsibilities and respective Capabilities (CBDR-RC), both of which are enshrined in the UNFCCC, makes it clear that those who have contributed most to the climate crisis and have the greatest capacity to respond must act accordingly. Video Credit: Shutterstock ©
A mosaic of solutions
Due to the enormity of the task of addressing loss and damage, a “mosaic of solutions” has been called for the Maldives and other climate-vulnerable developing countries. The “mosaic” would see work to address loss and damage building on, and learning from, existing mechanisms and initiatives such as the programs developed by the Scottish government and the Climate Justice Resilience Fund, reform of international financial architecture including debt relief and cancellation, (such as those proposed by the Bridgetown Initiative) and funds generated by innovative sources of finance.
Minister Ibrahim Didi, Minister of Fisheries and Agriculture, signing the 350 declaration during an underwater cabinet meeting held on October 17, 2009, to highlight the need to keep 1.5 alive to avoid existential loss and damage to the Maldives. Photo credit: Divers Association of Maldives / Sind / 350.org,
Recognising that it will take time to operationalise and fill the Loss and Damage Fund, climate-vulnerable developing countries are calling for a “mosaic of solutions” to assure that the actions urgently needed to address loss and damage begin as soon as possible.
Loss and damage litigation
As a result of the 30 year delay on loss and damage action, individuals are pursuing litigation against high-emitting companies as an alternative route to access compensation to address loss and damage in their communities. Ongoing cases against high-emitting companies brought by individuals have the potential to set powerful legal precedents for loss and damage claims. Important ongoing cases to watch include:
Saúl Luciano Lliuya speaks to journalists in Essen, Germany about his case against the German energy company RWE. Image Credit: Alexander Luna / Wikimedia
Peruvian farmer, Saúl Luciano Lliuya’s case against the German energy company RWE (Rheinisch-Westfälisches Elektrizitätswerk), in which he alleges that they having knowingly contributed to climate change by emitting large volumes of greenhouse gases and therefore bear responsibility for the melting of mountain glaciers which put his home in the town of Huaraz at risk of flooding. If successful, RWE will be required to provide significant financial contributions towards flood risk reduction measures.
Kepulauan Seribu National Park seen on the east side of Pari Island in Indonesia. Image Credit: Lucky Christiawan / Wikimedia
The case of Four Islanders of Pari v. Holcim, in which the plaintiffs are requesting Switzerland-based cement company Holcim to pay compensation for loss and damage already suffered in the Indonesian Island of Par due to repeated flooding caused by rising seas, as well as provide financial contributions to adaptation measures to reduce the impacts of sea-level rise.
International Court of Justice Advisory Opinion
In September 2021, Vanuatu announced at the United Nations General Assembly (UNGA) that it was building a coalition of states to request an advisory opinion on climate change from the International Court of Justice (ICJ) on the “obligations of States under international law to protect the rights of present and future generations against the adverse effects of climate change.”
Climate Change Minister of Vanuatu, Ralph Regenvanu, details the objectives of Vanuatu's ICJ Initiative at COP 27. Image Credit: Loss and Damage Collaboration, Copyright 2022 ©.
Led by Vanuatu and 18 core countries, Co-Sponsored by 132 States and championed by youth groups, as of the 01 March 2023, the ICJ Initiative had secured 105 Co-Sponsors, including states from both the global North and South.
On the 29th March, 2023, in a historic turning point for climate justice, the UNGA Resolution to seek the ICJ opinion was adopted by consensus. Now that the Resolution is adopted, the Court will commence legal proceedings.
Whilst ICJ advisory opinions are not legally binding, they carry significant moral and legal weight. If successful, the opinion could open doors to more expansive litigation, calling on high-emitting states and corporations to step up action and lend greater assistance to developing countries affected by loss and damage.
On the 29th March, 2023, in a historic turning point for climate justice, the UNGA Resolution to seek the ICJ opinion was adopted by consensus. Now that the Resolution is adopted, the Court will commence legal proceedings.
Whilst ICJ advisory opinions are not legally binding, they carry significant moral and legal weight. If successful, the opinion could open doors to more expansive litigation, calling on high-emitting states and corporations to step up action and lend greater assistance to developing countries affected by loss and damage.
8. How can we address Loss and Damage?
A vast range of activities
Addressing loss and damage will require a range of activities from rebuilding and relocating, to healing and remembering. These activities should be shaped by the communities experiencing loss and damage to reflect the values and priorities that they deem most important and centered on upholding human rights. Whilst there are a vast number of ways in which loss and damage can be addressed the following examples can help understand what type of activities will be require.
Residents of Beira begin to to clear up in the aftermath of Cyclone Idai, which struck Mozambique in 2019. Image credit: © Denis Onyodi / IFRC DRK Climate Centre / Flickr, licenced under licenced under CC BY-NC 2.0
Rebuilding
In the immediate aftermath of a climate intensified disaster such as a cyclone or flood, communities should be able to easily access funds so that they can start to rebuild vital infrastructure such as power and communications networks, institutions such as schools and hospitals, and homes.
The rapid dispersal of funds will reduce the likelihood that affected people will be permanently displaced from their communities or trapped in conditions from which they may be unable to rebuild their lives. The quick delivery of funds will also reduce disruption to education and health care.
The rapid dispersal of funds will reduce the likelihood that affected people will be permanently displaced from their communities or trapped in conditions from which they may be unable to rebuild their lives. The quick delivery of funds will also reduce disruption to education and health care.
Rising sea levels have eroded the coastline in front of the Inupiat Eskimo village of Shishmaref, in Alaska, Residents of the village have voted twice to relocate (in 2002 and 2016). But they haven’t moved. There’s not enough money to fund the relocation and the places chosen are not optimal. Whilst many residents feel that there are no places like Shishmaref. Image Credit: Bering Land Bridge National Preserve, licenced under CC-BY-4.0
Relocating
Where adaptation efforts have failed or were not possible to stop loss and damage occurring, it may be necessary for a community to relocate. When doing so, a community may not only need to build new homes, infrastructure and institutions, but also require support to establish new livelihood opportunities. Importantly, communities that have to move will often face mental health challenges as they come to terms with the loss of culture, heritage and identity linked to their former home. Therefore, programs to address non-economic losses will also be needed.
Communities in Mahaweli River Basin in Sri Lanka, work with UNDP, WFP and the Adaptation Fund, communities to adopt climate-smart agriculture, which is helping farmers earn higher profits, with more certainty. Image Credit: UNDP Sri Lanka, licenced under CC-BY-4.0
Reinvigorating Livelihoods
Whether relocating or not communities and individuals impacted by loss and damage, be it the result of a slow onset event such as a drought or a disaster such as a wildfire, may require support to establish and access new and diverse forms of livelihoods. This may require training to use new tools or techniques, grants to purchase new equipment, the subsidisation of the planting of drought or flood-resilient crops, or the building of new marketplaces. In doing so, impacted individuals will be less likely to have to migrate to seek economic opportunities elsewhere, children will be less likely to have to work to supplement their families' income, and women will face less exploitation.
Mangrove trees being planted in Timor-Leste to replace those lost to cyclones. Loss and damage finance should support communities to repair and restore ecosystems that offer critical protection from storms, harbour biodiversity and provide livelihood activities. Image Credit: UNDP Timor-Leste/Yuichi Ishida, licenced under CC-BY-4.0
Restoring and Rewilding
Ecosystems, species and individual animals impacted by the climate crisis will also need support to recover when loss and damage has or is occurring. When soils, forests or animal populations have been damaged, they will need programs to help them recover. And when species are lost from an ecosystem or are at risk of being lost altogether, they will need to be re-introduced or relocated so that they may once again thrive. In doing so those that depend upon nature for their livelihoods, subsistence, and ecosystem services such as water and oxygen, will also face less exposure to vulnerability and uncertainty.
A patient suffering from dengue fever receives medical treatment at an isolation ward of a hospital in Karachi, Pakistan, 04 October 2022. The unprecedented flooding in Pakistan has led to outbreaks of diseases such as diarrhea, dysentery, dengue fever and malaria, (2022). Image Credit: SHAHZAIB AKBER/EPA-EFE/Shutterstock ©
Healing
Trauma, both physical and mental, such as sickness resulting from exposure to flood waters (e.g cholera, malaria, or dengue fever), or the onset of post-traumatic stress disorder (PTSD) following a wildfire, is a form of loss and damage that needs to be addressed on an individual basis. Whilst some traumas will need to be dealt with immediately in the aftermath of a disaster, others, such as PTSD anxiety or depression, may take years to manifest, be diagnosed and treated. Therefore, support to heal, both mentally and physically during and after loss and damage has occurred must be long-term.
German Chancellor Angela Merkel and Rhineland-Palatinate State Premier Malu Dreyer (C) talk as they visit the flood-ravaged village of Schuld near Bad Neuenahr-Ahrweiler, Rhineland-Palatinate state, Germany July 18, 2021. After major flooding occurred in Germany, Belgium, the Netherlands and Luxembourg between 12-15 July, 2021, Belgium declared a day of mourning. Image Credit: REUTERS / Alamy Stock Photo ©
Remembering
After climate disasters have happened and when changes are ongoing as a result of slow-motion disasters such as sea level rise or saltwater intrusion, the loss of lives, heritage, culture, identity, sense of place and much more may require activities that enable communities and individuals to mourn and remember that which has been lost or damaged. Such initiatives could take the form of a monument, museum, archive, memorial, remembrance service, or storytelling initiative, that is shaped by those affected so that they may come to terms with changes caused by the climate crisis.
9. Why does Loss and Damage matter?
The fight for Climate Justice
The fight for Loss and Damage under the UNFCCC is a fight to recognise the historical responsibility of countries in the global North to pay their fair share to address the climate crisis that has been caused by their historical emissions. The UNFCCC and its Paris Agreement recognise that developed countries should lead in combating climate change and addressing related impacts, in accordance with their “common but differentiated responsibility and respective capabilities”. The efforts towards ambitious outcomes on Loss and Damage under the UNFCCC aim to support developing countries to understand the scale of losses and damages they are suffering and be assisted to identify, prioritise and access technical assistance to address their needs.
The Loss and Damage discussions under the global climate regime (the UNFCCC) are important because developing countries urgently need support to address losses and damages from climate change impacts. The burden to recover from the impacts of the climate crisis should not be placed on the shoulders of impacted communities and individuals in the global South.
The Loss and Damage discussions under the global climate regime (the UNFCCC) are important because developing countries urgently need support to address losses and damages from climate change impacts. The burden to recover from the impacts of the climate crisis should not be placed on the shoulders of impacted communities and individuals in the global South.
The Loss and Damage Youth Coalition (LDYC) make its loud and clear that the youth demand that Loss and Damage finance is delivered at COP27 as a matter of climate justice. Image Credit: Loss and Damage Collaboration, Copyright 2022 ©.
Although there are historical reasons such as conflict and corruption why many countries are still struggling to develop that must also be acknowledged and addressed, they should not be used as excuses to further delay or deny action on Loss and Damage. With many developing country decision-makers already overwhelmed with the implementation of development policies and plans such as those aimed at improving health and well-being, livelihoods and infrastructures, It is important to recognise Countries of the global North have a responsibility to address the injustice and inequality that has been caused by the centuries of colonisation and exploitation of communities in the global South.
Ultimately. Addressing loss and damage at the scale of the needs is an issue of climate justice, something that was made crystal clear by the Chair of the G77 and China, H.E. Sherry Rehman of Pakistan, during the closing plenary of COP 27: “The establishment of a Loss and Damage fund is not charity. It is a down payment on our shared futures. It is a down payment on climate justice.”
Ultimately. Addressing loss and damage at the scale of the needs is an issue of climate justice, something that was made crystal clear by the Chair of the G77 and China, H.E. Sherry Rehman of Pakistan, during the closing plenary of COP 27: “The establishment of a Loss and Damage fund is not charity. It is a down payment on our shared futures. It is a down payment on climate justice.”
Loss and Damage means different things to different groups
It is also important to recognise that loss and damage means different things to different peoples, groups and states and that many states and actors cannot always say what they really mean in the UNFCCC context due to the current geopolitical systems of rule. For example, for some, loss and damage, and climate change more generally, is an avenue to address historical and contemporary harms linked to colonialism and capitalism. Whereas for others, security and stability are primary concerns, (a thinking that currently dominates how we are dealing with loss and damage), and loss and damage is framed as a future risk that can be tackled with existing support such as humanitarian aid, and not something that is happening now.
Ina-Maria Shikongo performs as part of the Flood The COP action alongside other women from the global South and members of Climate Action Network on Friday the 11th of November at COP27. Image credit: Loss and Damage Collaboration , Copyright 2022 ©.
Loss and damage as a lever to catalyse a Polluter Pays approach and drive mitigation ambition
The manifestation of increasing loss and damage across the world and the growing recognition that large polluting companies hold the lion's share of responsibility for the climate crisis provides an opportunity to ensure that polluters pay up for the loss and damage that they have caused via the Polluter Pays Principle. Whether paying compensation directly to impacted communities as a result of litigation or paying into the Loss and Damage Fund via levies on products and profits, increased pressure on fossil fuel companies will help to ratchet up mitigation by disincentivizing polluting activities and promoting sustainable ones.
10. What needs to happen to Address Loss and Damage?
What do governments
need to do?
need to do?
Vulnerable developing countries need finance, technology and capacity building which meets the scale of the evolving needs to address loss and damage from the impacts of climate change. They need technical assistance and funding in the form of grants to build the capacity of people on the ground and decision-makers to develop and implement measures to reduce and address loss and damage.
It is critical to focus discussions on addressing loss and damage, the mandate of the WIM and the role of the UNFCCC vis-a-vis Loss and Damage. The Paris Agreement recognises the importance of averting loss and damage (through mitigation) and minimising loss and damage (through adaptation). Scaling up both mitigation and adaptation is essential, particularly in light of the IPCC’s Sixth Assessment Report. However, civil society must not let developed countries divert focus from the important work of addressing loss as the impacts of the climate crisis intensify in frequency and magnitude.
It is critical to focus discussions on addressing loss and damage, the mandate of the WIM and the role of the UNFCCC vis-a-vis Loss and Damage. The Paris Agreement recognises the importance of averting loss and damage (through mitigation) and minimising loss and damage (through adaptation). Scaling up both mitigation and adaptation is essential, particularly in light of the IPCC’s Sixth Assessment Report. However, civil society must not let developed countries divert focus from the important work of addressing loss as the impacts of the climate crisis intensify in frequency and magnitude.
First Minister of Scotland Nicola Sturgeon announces a further £5m of funding for Loss and Damage at COP 27 to support communities impacted by slow-onset events and non-economic loss and damage. During a speech accompanying the announcement the First Minister acknowledged that Scotland's Loss and Damage support was an act of reparation. Image credit:
Loss and Damage Collaboration , Copyright 2022 ©.
Loss and Damage Collaboration , Copyright 2022 ©.
What can you do?
To support developing countries it is important to use the phrase “loss and damage” when referring to the impacts of climate change that are unavoided or unavoidable. It is also important to emphasise both the economic and non-economic costs of climate change and that loss and damage is leading to significant human rights violations. When questions of who will pay for loss and damage are raised, measurements of historic emissions per capita, the Polluter Pays Principle and the principle of Common But Differentiated Responsibilities (CBDR) are useful tools to push back on arguments where the nations most responsible for the climate crisis are absolved from responsibility. When solutions to address loss and damage are discussed and agreed upon, it is essential to assure that affected communities and the constituencies most impacted by the climate crisis (women, Indigenous peoples, youth, etc) are able to participate and meaningfully affect the decision-making process and that the principles of equity, CBDR, justice and human rights are applied. Above all, the fact that those least responsible for the climate crisis are paying for the loss and damage it is causing must be central to any decisions on Loss and Damage.
Alexia Leclercq of the Colorado River Conservancy demands that polluters pay up for Loss and Damage alongside the Loss and Damage Youth Coalition at COP27. Image Credit: Loss and Damage Collaboration , Copyright 2022 ©.
These important actions are essential to stand in solidarity with vulnerable developing countries in their pursuit of climate justice. It also helps raise the profile of Loss and Damage with global change makers. In discussions on the resilient recovery from COVID-19 we need to ensure that there is emphasis on the impacts that COVID-19 has had on the ability of vulnerable countries to build resilience to climate change and address loss and damage.
11. What Needs to Happen Next to Address Loss and Damage?
The road to COP 28 and beyond
Over the next two years and beyond it will be more important than ever for civil society to be aligned with the demands of developing countries and for work on the ground to address those needs. The historic outcome of COP 27 provides many opportunities for engagement, including via the Transitional Committee of the Loss and Damage Fund and the Glasgow Dialogue, which is essential to ensure that the outcome of COP 27 is operationalised in a way that meets the needs and fulfils the demands of developing countries. The areas of focus include:
The Loss and Damage Fund: It will be important to engage with and support the Transitional Committee and its members. The fund must be operationalised according to what is equitable in terms of who pays, who benefits and how it is governed. It will be critical to learn lessons from the processes within the Green Climate Fund (GCF), particularly in relation to direct access and country contact points. It is essential that civil society align with the demands of vulnerable developing countries and coordinate with each other to build on and complement each others’ work.
Santiago Network: The process to select a host for the secretariat of the Santiago Network was launched at the end of 2022, with a view to a selection being made in 2023. However, Parties could not agree on a host at SB58 and will continue deliberations at SB59 during COP 28. It is important that the host for the secretariat is located in the global South in order to ensure that the Network takes into account the experiences of those on the frontlines of the climate crisis and helps build capacity within impacted countries. Although Environmental NGOs were not explicitly included in the Advisory Board of the Santiago Network, civil society can work to equip the three constituencies (Women and Gender, Youth, and Indigenous Peoples constituencies) that were included to actively and meaningfully participate in the decision-making process.
New collective goal on climate finance: It is essential that civil society continue to advocate for Loss and Damage to be included in the work under the NCQG to support the demand of developing countries. Focus should be directed towards mobilising finance at the scale of the needs to address loss and damage.
Global stocktake: It is also important that civil society continue to advocate for Loss and Damage to be included in the Global Stocktake of the Paris Agreement (GST) to support the demands of developing countries. Vulnerable developing countries will need support to include information relevant to Loss and Damage in their Nationally Determined Contributions and other communication and reporting documents. In addition, the global community must respond to the call from the Climate Vulnerable Forum and other vulnerable developing country groups and Parties to develop a Loss and Damage finance gap report. A regular report could inform progress on the extent to which loss and damage is being addressed worldwide and could be an input into the next GST.
Advocating for mitigation ambition to avoid future loss and damage: The lack of progress on keeping the 1.5°C goal alive, including the failure to agree to phase out all fossil fuels is extremely concerning. Mitigation is the best way to avoid future loss and damage. It is critical to make the link between mitigation, adaptation and Loss and Damage and to stress that evidence of loss and damage should inspire ambitious mitigation action and scaled up adaptation finance alongside action and support to address loss and damage.
The Loss and Damage Fund: It will be important to engage with and support the Transitional Committee and its members. The fund must be operationalised according to what is equitable in terms of who pays, who benefits and how it is governed. It will be critical to learn lessons from the processes within the Green Climate Fund (GCF), particularly in relation to direct access and country contact points. It is essential that civil society align with the demands of vulnerable developing countries and coordinate with each other to build on and complement each others’ work.
Santiago Network: The process to select a host for the secretariat of the Santiago Network was launched at the end of 2022, with a view to a selection being made in 2023. However, Parties could not agree on a host at SB58 and will continue deliberations at SB59 during COP 28. It is important that the host for the secretariat is located in the global South in order to ensure that the Network takes into account the experiences of those on the frontlines of the climate crisis and helps build capacity within impacted countries. Although Environmental NGOs were not explicitly included in the Advisory Board of the Santiago Network, civil society can work to equip the three constituencies (Women and Gender, Youth, and Indigenous Peoples constituencies) that were included to actively and meaningfully participate in the decision-making process.
New collective goal on climate finance: It is essential that civil society continue to advocate for Loss and Damage to be included in the work under the NCQG to support the demand of developing countries. Focus should be directed towards mobilising finance at the scale of the needs to address loss and damage.
Global stocktake: It is also important that civil society continue to advocate for Loss and Damage to be included in the Global Stocktake of the Paris Agreement (GST) to support the demands of developing countries. Vulnerable developing countries will need support to include information relevant to Loss and Damage in their Nationally Determined Contributions and other communication and reporting documents. In addition, the global community must respond to the call from the Climate Vulnerable Forum and other vulnerable developing country groups and Parties to develop a Loss and Damage finance gap report. A regular report could inform progress on the extent to which loss and damage is being addressed worldwide and could be an input into the next GST.
Advocating for mitigation ambition to avoid future loss and damage: The lack of progress on keeping the 1.5°C goal alive, including the failure to agree to phase out all fossil fuels is extremely concerning. Mitigation is the best way to avoid future loss and damage. It is critical to make the link between mitigation, adaptation and Loss and Damage and to stress that evidence of loss and damage should inspire ambitious mitigation action and scaled up adaptation finance alongside action and support to address loss and damage.
COMMON LOSS AND DAMAGE ABBREVIATIONS AND TERMS
Abbreviations
AGN: African Group of Negotiators
AOSIS: Alliance of Small Island States
CVF: Climate Vulnerable Forum
COP: Conference of the Parties to UNFCCC
CMA: Conference of the Parties serving as the meeting of the Parties to the Paris Agreement
GCF: Green Climate Fund
GDP: Gross Domestic Product
GHG: Greenhouse gas emissions
G77 and China: Coalition of developing countries, created to enhance joint negotiating capacity in the United Nations
IPCC: Intergovernmental Panel on Climate Change
LDC: Least developed country
NELD: Non-economic loss and damage
ODA: Overseas Development Assistance
SIDS: Small Island Developing States
UNFCCC: United Nations Framework Convention on Climate Change
WIM: Warsaw International Mechanism
WIM ExCom: The Executive Committee of the Warsaw International Mechanism for Loss and Damage
AOSIS: Alliance of Small Island States
CVF: Climate Vulnerable Forum
COP: Conference of the Parties to UNFCCC
CMA: Conference of the Parties serving as the meeting of the Parties to the Paris Agreement
GCF: Green Climate Fund
GDP: Gross Domestic Product
GHG: Greenhouse gas emissions
G77 and China: Coalition of developing countries, created to enhance joint negotiating capacity in the United Nations
IPCC: Intergovernmental Panel on Climate Change
LDC: Least developed country
NELD: Non-economic loss and damage
ODA: Overseas Development Assistance
SIDS: Small Island Developing States
UNFCCC: United Nations Framework Convention on Climate Change
WIM: Warsaw International Mechanism
WIM ExCom: The Executive Committee of the Warsaw International Mechanism for Loss and Damage
Terms
Averting, minimising and addressing Loss and Damage: In discussions around Loss and Damage, this term is often used. Broadly, averting can be seen to mean ‘mitigation’ and minimising can be seen as ‘adaptation’. Addressing climate impacts not mitigated or adapted to is what developing countries seek finance for.
Developed countries: Here, this term refers to countries denoted as ‘Annex I countries’ under the UNFCCC, as of 2018.
Developing countries: All non-Annex I countries under the UNFCCC. We recognise the problematic connotations of the terms ‘developing’ and ‘developed’, but have used them in this explainer as they are the categories commonly used in discussions under the UNFCCC.
Intersessionals: The meetings of the subsidiary bodies which take place between COPs to make technical progress on issues ahead of the COP negotiations.
Santiago Network for Loss and Damage: Agreed at COP25, this is a network intended to catalyse technical assistance to address Loss and Damage.
Transitional Committee: Following the decision to establish the Loss and Damage Fund and Funding Arrangements at COP 27 a Transitional Committee was established to provide recommendations at COP 28 on the operationalisation of the Fund and Funding Arrangements.
V20: The Vulnerable Twenty Group of Ministers of Finance of the Climate Vulnerable Forum (CVF), currently representing 55 countries, 1.4 billion people and 5% of global emissions.
Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts: Established at COP 19 to address loss and damage associated with impacts of climate change, including extreme events and slow-onset events, in developing countries that are particularly vulnerable to the adverse effects of climate change.
Developed countries: Here, this term refers to countries denoted as ‘Annex I countries’ under the UNFCCC, as of 2018.
Developing countries: All non-Annex I countries under the UNFCCC. We recognise the problematic connotations of the terms ‘developing’ and ‘developed’, but have used them in this explainer as they are the categories commonly used in discussions under the UNFCCC.
Intersessionals: The meetings of the subsidiary bodies which take place between COPs to make technical progress on issues ahead of the COP negotiations.
Santiago Network for Loss and Damage: Agreed at COP25, this is a network intended to catalyse technical assistance to address Loss and Damage.
Transitional Committee: Following the decision to establish the Loss and Damage Fund and Funding Arrangements at COP 27 a Transitional Committee was established to provide recommendations at COP 28 on the operationalisation of the Fund and Funding Arrangements.
V20: The Vulnerable Twenty Group of Ministers of Finance of the Climate Vulnerable Forum (CVF), currently representing 55 countries, 1.4 billion people and 5% of global emissions.
Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts: Established at COP 19 to address loss and damage associated with impacts of climate change, including extreme events and slow-onset events, in developing countries that are particularly vulnerable to the adverse effects of climate change.
