LOSS AND DAMAGE FUND - POLITY
News: Following the
devastating landslides in Kerala’s Wayanad district, there has been significant
discussion concerning the eligibility of subnational entities like districts to
receive compensation through the Loss and Damage Fund (LDF), established under
the United Nations Framework Convention on Climate Change (UNFCCC).
What’s in the news?
Loss and Damage Fund: Addressing
Irreversible Climate Consequences
- The
Loss and Damage (L&D) fund addresses irreversible climate change
consequences unmitigated by adaptation efforts.
- Compensation
for real losses encompassing human rights, well-being, and environmental
sustainability.
Genesis and Historical Accountability:
- Persistent
calls over 30 years for affluent nations to acknowledge historical
pollution’s role in global temperature rise.
- Historic
pollution causes widespread damage, especially affecting the poorest
nations.
COP 19 and Fund Inception:
- Formal
agreement at COP 19 in 2013 led to the establishment of the L&D fund.
- Designed
to provide financial and technical assistance to economically developing
nations facing Loss and Damage.
Subsequent Developments and Challenges:
·
COP 25: Santiago
Network for L&D established, but no country committed funds.
·
COP 26:2021
summit in Glasgow continued discussions on the fund’s operationalization.
·
Agreement to set up the L&D fund.
·
Transitional Committee (TC) formed to
devise operational mechanisms.
Stalemate at TC4 and TC5:
·
No consensus on operationalizing the fund.
·
Contention over hosting at the World Bank,
common but differentiated responsibilities (CBDR), climate reparations, and
eligibility of developing nations.
·
Drafted recommendations forwarded to COP
28.
Challenges Regarding the Loss and Damage
Fund
Non-Commitment of Developed Nations:
- Developed
nations, especially the US, show reluctance to be primary donors, raising
doubts about their commitment.
- Voluntary
support undermines global climate negotiations and cooperative efforts.
Uncertainty Regarding Fund Size:
- Lack
of clarity on the fund’s size, with attempts to specify it thwarted by the
U.K. and Australia.
- The
current draft urges developed nations to contribute without a defined
commitment or framework.
Discontent among Developing Nations:
- Developing
nations feel their concerns are inadequately addressed, complicating
climate action and eroding trust.
- Weakness
in the L&D fund threatens climate justice, disproportionately
affecting vulnerable communities.
Global Implications:
- Weakening
the L&D fund has broader implications, challenging climate justice and
worsening the plight of vulnerable communities.
- Potential
security challenges arise as climate-induced instability leads to
conflicts with cross-border repercussions.
Humanitarian Consequences:
- Absence
of support for vulnerable communities may result in humanitarian crises,
including food shortages, displacement, and conflicts.
- Communities
are left to independently cope with worsening climate impacts,
exacerbating the humanitarian burden.
Way Forward for the Loss and Damage Fund
Call for Active Contribution:
- Urge
developed nations to play a pivotal role as primary donors to the Loss and
Damage (L&D) fund, demonstrating a robust financial commitment.
Advocate for Transparency:
- Push
for transparent discussions to clearly define the fund’s size, operational
guidelines, and allocation mechanisms, ensuring accountability and
effectiveness.
Promote Diplomatic Dialogues:
- Foster
open diplomatic dialogues addressing the concerns of developing nations,
emphasizing collaboration for impactful climate action and resolution of
global issues.
Address Security Implications:
- Proactively
tackle security implications arising from climate-induced instability,
implementing measures to manage humanitarian crises and support vulnerable
communities.
Source: https://english.mathrubhumi.com/news/kerala/kerala-public-works-department-faces-more-than-eight-hundred-crore-loss-in-one-week-rains-1.9886287