Discussing Financing Options on Loss & Damage Ahead of COP27

Event Video 

IPI together with the Republic of Maldives cohosted the launch of a policy brief on “Options for a Loss and Damage Financial Mechanism” written by Dr. Michael Franczak on October 17th.The paper is meant to provide negotiators and other stakeholders with a comprehensive and clear analysis of options for a new loss and damage financial mechanism before they meet in Sharm El Sheikh. It will enable stakeholders to identify key principles and potential areas of cooperation.

As efforts to mitigate and adapt to the impacts of climate change continue to fall short, discussions around loss and damage (L&D) resulting from climate change have gained urgency. Loss and damage (L&D) refer to the impacts of climate change that cannot be (or have not been) avoided through mitigation or adaptation. Although no formal definition exists, a “consensus” understanding of L&D includes “climate-related impacts and risks from both sudden-onset events, such as floods and cyclones, and slower-onset processes, including droughts, sea-level rise, glacial retreat, and desertification.”

This event provided a space to explore creative financing options for loss and damage and possible ways forward at the 2022 United Nations Climate Change Conference (COP27) and beyond. Speakers addressed the specifics of a loss and damage financial mechanism, and the urgent need for improved financing. “Climate change is hitting us on multiple fronts. We need to accelerate action on loss and damage and accelerate funding,” said H.E. Aminath Shauna, Minister of Environment, Climate Change and Technology, Republic of Maldives.

The discussion also highlighted the importance of transparent and collaborative action. “I would like to see honesty, which involves acknowledgment of inaction—three decades of inaction—that puts us where we are now, especially for Small Island Developing States,” said H.E. Tina Stege, Climate Envoy, Republic of the Marshall Islands. “We need solidarity to come up with solutions in a constructive and collaborative way.” In the weeks preceding COP27, the event provided an important forum for the discussion of loss and damage, potential partnerships, and long-term solutions.

Opening remarks:
Zeid Ra’ad Al Hussein, President and CEO, International Peace Institute

H.E. Aminath Shauna, Minister of Environment, Climate Change and Technology, Republic of Maldives
Michael Franczak, Adviser on Loss and Damage, International Peace Institute
Sinéad Walsh, Climate Envoy and Deputy Director General for Irish Aid and Africa, Irish Ministry of Foreign Affairs
H.E. Tina Stege, Climate Envoy, Republic of the Marshall Islands

Jimena Leiva Roesch, Director of Global Initiatives, International Peace Institute