Media briefing note on the Loss and Damage Response Fund

2022-10-19 AOSIS Download PDF

Topic: Climate

• GAPS IN EXISTING ARRANGEMENTS: There are clear gaps in existing funding
arrangements to adequately assist developing countries in meeting the cost of their ex-post responses that aim to address non-economic and economic loss and damage
associated with the adverse effects of climate change, including extreme weather events
and slow onset events.
The gap is especially apparent in the operating entities (i.e., multilateral funds) of the
United Nations Framework Convention on Climate Change (‘UNFCCC’) Financial
Mechanism which do not presently have dedicated sources of support to developing
countries to implement ex-post responses.
In June 2022, G77 & China requested a sub-agenda item on both the COP 27 and CMA
4 provisional agendas under ‘Matters relating to finance’, that is titled ‘Matters relating to
funding arrangements for addressing loss and damage’. This sub-agenda item would
delve deeper into loss and damage response financing, and provide a space to build
consensus on how this could be comprehensively addressed.
In the Glasgow Climate Pact, CMA 3 requested the Subsidiary Body for Implementation
(SBI) to organize the Glasgow Dialogue to discuss funding arrangements for activities to
“avert, minimize and address” loss and damage. This Dialogue entails 6 hours of
discussions per SBI session from 2022 to 2024, 18 hours in total, at an expert level (not
decision-making), with a very broad scope on all aspects of loss and damage (not just
“addressing”). The Glasgow Dialogue is simply a forum in a workshop setting to share
ideas. Therefore, the new COP and CMA agenda item proposed by G77 & China is
essential for Parties to take decisions that establish funding arrangements to address loss
and damage due to the adverse impacts of climate change.
• AHEAD OF COP 27: Building on the G77 & China position for the new sub-agenda item,
AOSIS Leaders have endorsed the following way forward for adoption at COP 27:
o smooth adoption of the agenda item before work begins;
o acknowledgement of the gaps in existing funding arrangements, especially under
the UNFCCC, as well as the urgent and immediate need for new, additional,
adequate and predictable financial resources to assist developing countries to
meet the cost of the ex-post responses to loss and damage;
o an agreement to establish a new, fit-for-purpose multilateral fund designated as an
operating entity of the UNFCCC Financial Mechanism; and
o a commitment for the further design and operationalization of the multilateral fund
through the agreed sub-agenda item, and an ad-hoc committee for intersessional
work that complements the Glasgow Dialogue mandated events.
The outcome of the Fund’s design and operationalization would then be completed by
COP 28 in 2023.
• PROPOSED FUND LINK TO CLIMATE INACTION: The need for this multilateral fund is
directly linked to, among other things, the inadequate global response on mitigation in
relation to the Convention and the Paris Agreement goals. Conversely, it should be noted
that achieving the goal of pursuing efforts to limit the temperature increase to 1.5°C would significantly reduce the risks, and loss and damage of climate change.

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Sub Topic: Finance


Meeting: COP27