A breakthrough decision was made to operationalize the Loss and Damage (L&D) climate finance on the opening day COP28. The decision was immediately followed by initial pledges of around USD700 million for the new L&D Fund. This marked an important beginning towards supporting the world’s most vulnerable countries in addressing climate-induced losses and damages. However, challenges remain in the Fund’s operationalization. Advocates of climate justice seem to be worried about the slow progress in the operationalization of the Fund, as well as the potential loss of traction and momentum that emerged in COP28.
Operationalization of the Fund is not straightforward and can prove extremely challenging. Some of the previous efforts with international climate finance have had severe limitations, failing to fulfil their intended outcome of supporting the most vulnerable communities. Indeed, Small Island Developing States (SIDS), widely acknowledged for their extreme climate vulnerability and special circumstances, have been found to receive significantly less finance than least developed countries (7 times less), lower-middle-income countries (11 times less), and less than upper-middle-income countries (5 times less).
So how could the L&D Fund be effective in locally delivering finance to the most vulnerable communities? In this policy brief, we outline six guiding principles for operationalizing the L&D Fund from a climate justice lens. These principles are derived through our policy-engaged and participatory research in STRENGTH Project countries, Bangladesh, Nepal, Senegal, and Vanuatu, listening to community voices, and stakeholder opinions as part of our research and capacity-building efforts. These principles also embrace UNFCCC’s founding concept of climate justice, including procedural justice, distributive justice, justice as recognition, and restorative justice.
Full policy perspective can be found here: Operationalizing the Loss and Damage Fund: Six Principles from Climate Justice Lens