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Loss and damage from climate change: How much should rich countries pay?

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The UN Framework Convention on Climate Change (UNFCCC) has defined loss and damage to include harms resulting from sudden-onset events as well as slow-onset processes. Loss and damage can occur in human systems as well as natural systems. For loss and damage financing, developed countries have a considerable responsibility and capacity to pay for harms that are already occurring. Of course, many harms will be irreparable in financial terms. However, where monetary contributions can help restore the livelihoods or homes of individuals exposed to climate change impacts, they must be paid. The US and the EU owe more than half the cost of repairing future damage. The new UN Monitor published by Global Policy Watch assesses the fair share approach and states that the advantage of setting out responsibility and capacity to act in numerical terms is to drive equitable and robust action today. Responsible and capable countries must ensure that those most able to pay towards loss and damage repairs are called upon to do so through domestic legislation that ensures correlated progressive responsibility.

November 30, 2019 | Global Policy Watch

Loss and damage from climate change: How much should rich countries pay?

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“The wealthy countries must begin providing public climate finance at the scale necessary to support not only adaptation but loss and damage as well, and they must do so in accordance with their responsibility and capacity to act.” This is the main message of a technical report titled Can Climate Change-Fuelled Loss and Damage Ever Be Fair?, launched on the eve of the UN Climate Change Conference (COP25) to be held in Madrid from 2 to 13 December.

The US and the EU owe more than half the cost of repairing future damage says the report, authored by Civil Society Review, an independent group that produces figures on what a “fair share” among countries of the global effort to tackle climate change should look like.

“The poorer countries are bearing the overwhelming majority of the human and social costs of climate change. Consider only one tragic incident – the Cyclones Idai and Kenneth – which caused more than $3 billion in economic damages in Mozambique alone, roughly 20 % of its GDP, with lasting implications, not to mention the loss of lives and livelihoods” argues the report. “Given ongoing and deepening climate impacts, to ensure justice and fairness, COP25 must as an urgent matter operationalise loss and damage financing via a facility designed to receive and disburse resources at scale to developing countries.”

The UN Framework Convention on Climate Change (UNFCCC) has defined loss and damage to include harms resulting from sudden-onset events (climate disasters, such as cyclones) as well as slow-onset processes (such as sea level rise). Loss and damage can occur in human systems (such as livelihoods) as well as natural systems (such as biodiversity).

Eight weeks after Hurricane Dorian – the most intense tropical cyclone to ever strike the Bahamas – Prime Minister of Barbados, Mia Amor Mottley, spoke at the United Nations SecretaryGeneral’s Climate Action Summit. She said: “For us, our best practice traditionally was to share the risk before disaster strikes, and just over a decade ago we established the Caribbean Catastrophic Risk Insurance Facility. But, the devastation of Hurricane Dorian marks a new chapter for us. Because, as the international community will find out, the CCRIF will not meet the needs of climate refugees or, indeed, will it be sufficient to meet the needs of rebuilding. No longer can we, therefore, consider this as an appropriate mechanism…There will be a growing crisis of affordability of insurance.”

Read the full UN Monitor #10 here.
 

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