Loss and Damage funds have been officially established at the CoP 28 climate change conference in Dubai.
What is the Loss and Damage Fund?
- The ‘Loss and Damage’ (L&D) fund is a financial mechanism designed to tackle the irreversible consequences of climate change that cannot be avoided or mitigated through adaptation efforts.
- Adaptation is the proactive response to climate change, the art of survival using which communities and countries make deliberate choices to prepare for and cope with climate-related challenges.
- This fund recognizes and aims to compensate for the real losses incurred by communities, countries, and ecosystems due to the impacts of climate change.
- These losses extend beyond monetary value and cut to the core of human rights, well-being, and environmental sustainability.
Genesis and Evolution of the L&D Fund:
Historical Accountability and Inception:
- Over 30 years, there has been a persistent call for affluent nations to acknowledge their role in historic pollution, which has elevated the world’s average surface temperature by more than 1 degree Celsius.
- This historic pollution is currently causing significant damage worldwide, especially in the poorest nations.
- The formal agreement at the 19th Conference of the Parties (COP 19) to the United Nations Framework Convention on Climate Change (UNFCCC) in Warsaw, Poland, in 2013, led to the establishment of the L&D fund.
- The establishment of the fund specifically aimed to provide financial and technical assistance to economically developing nations experiencing Loss and Damage due to climate change.
Subsequent Developments and Challenges:
After COP19, the establishment of the Santiago Network for L&D took place during COP25. However, at this point, countries did not commit any funds to support the initiative.
The 2021 COP 26 Climate Summit in Glasgow aimed to continue discussions over the next three years regarding the operationalization of the fund.
After intense negotiations at COP 27, representatives of the UNFCCC’s member states agreed to set up the L&D fund. Additionally, the establishment of a Transitional Committee (TC) aimed to determine the operational procedures of the new funding mechanisms under the fund.
The TC had the responsibility of drafting recommendations for countries to consider, deliberate, and potentially adopt by COP 28.
How much Loss and Damage the World is facing?
Around 55 Vulnerable Countries have suffered a $525 Billion combined climate crisis – fulled losses in the last 20 years.
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