The Loss and Damage Fund is a climate finance mechanism created during the 27th Conference of Parties (COP), held in Egypt in 2022. The fund was designed to address loss and damage, to support communities when adaptation strategies are inadequate or implemented too late, and damage and risk has already happened. [1] : 63
This was an agreement between the nations to establish a multilateral loss and damage fund to support communities in averting, minimizing, and addressing damages and risks, [1] : 63 after three decades of negotiation on loss and damage caused by climate change. Finally, the 27th Conference of Parties (COP) adopted a proposal drafted by the Warsaw International Mechanism for Loss and Damage. [2] This fund will be available to support poorer countries for the losses and damages caused by climate change. The parties agree to utilise the Santiago Network, established at COP25, [3] to provide technical assistance in averting, minimizing, and addressing loss and damage. [4] The fund will operate as a financial mechanism of the Paris Agreement. [5] During COP29 in Baku, it was announced that the fund was ready to receive contributions, and that it will start financing projects in 2025. [6]
At previous COP events, industrialised nations blocked attempts by low and middle-income countries asking for financial support with their climate adaptation plans. At COP26 in Glasgow, Scotland became the first Global North country to pledge bilateral finance specifically for loss and damage. [7] In the following year, at COP27, the agreement to support countries for loss and damage from climate change was signed, and that was seen by many as a major breakthrough. [8]
The United Nations Framework Convention on Climate Change (UNFCCC) is the UN process for negotiating an agreement to limit dangerous climate change. It is an international treaty among countries to combat "dangerous human interference with the climate system". The main way to do this is limiting the increase in greenhouse gases in the atmosphere. It was signed in 1992 by 154 states at the United Nations Conference on Environment and Development (UNCED), informally known as the Earth Summit, held in Rio de Janeiro. The treaty entered into force on 21 March 1994. "UNFCCC" is also the name of the Secretariat charged with supporting the operation of the convention, with offices on the UN Campus in Bonn, Germany.
The Global Environment Facility (GEF) is a multilateral environmental fund that provides grants and blended finance for projects related to biodiversity, climate change, international waters, land degradation, persistent organic pollutants (POPs), mercury, sustainable forest management, food security, and sustainable cities in developing countries and countries with economies in transition. It is the largest source of multilateral funding for biodiversity globally and distributes more than $1 billion a year on average to address inter-related environmental challenges.
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Disaster risk reduction aims to make disasters less likely to happen. The approach, also called DRR or disaster risk management, also aims to make disasters less damaging when they do occur. DRR aims to make communities stronger and better prepared to handle disasters. In technical terms, it aims to make them more resilient or less vulnerable. When DRR is successful, it makes communities less the vulnerable because it mitigates the effects of disasters. This means DRR can make risky events fewer and less severe. Climate change can increase climate hazards. So development efforts often consider DRR and climate change adaptation together.
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Climate reparations are a type of requested loss and damage payments for damage and harm caused by climate change, which may include debt cancellation. The term climate reparations differs from simple "loss and damage," in that it is based on the concept of reparations, that compensation holds countries accountable for historical emissions, and is an ethical and moral obligation.
The Paris Agreement is an international treaty on climate change that was signed in 2016. The treaty covers climate change mitigation, adaptation, and finance. The Paris Agreement was negotiated by 196 parties at the 2015 United Nations Climate Change Conference near Paris, France. As of February 2023, 195 members of the United Nations Framework Convention on Climate Change (UNFCCC) are parties to the agreement. Of the three UNFCCC member states which have not ratified the agreement, the only major emitter is Iran. The United States withdrew from the agreement in 2020, but rejoined in 2021.
The Green Climate Fund (GCF) is a fund for climate finance that was established within the framework of the United Nations Framework Convention on Climate Change (UNFCCC). Considered the world's largest fund of its kind, GCF's objective is to assist developing countries with climate change adaptation and mitigation activities. The GCF is an operating entity of the financial mechanism of the UNFCCC. It is based in Songdo, Incheon, South Korea. It is governed by a Board of 24 members and supported by a Secretariat.
Climate finance is an umbrella term for financial resources such as loans, grants, or domestic budget allocations for climate change mitigation, adaptation or resiliency. Finance can come from private and public sources. It can be channeled by various intermediaries such as multilateral development banks or other development agencies. Those agencies are particularly important for the transfer of public resources from developed to developing countries in light of UN Climate Convention obligations that developed countries have.
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Loss and damage is a concept to describe results from the adverse effects of climate change and how to deal with them. There has been slow progress on implementing mitigation and adaptation. Some losses and damages are already occurring, and further loss and damage is unavoidable. There is a distinction between economic losses and non-economic losses. The main difference between the two is that non-economic losses involve things that are not commonly traded in markets.
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The United Nations Climate Change Conferences are yearly conferences held in the framework of the United Nations Framework Convention on Climate Change (UNFCCC). They serve as the formal meeting of the UNFCCC parties – the Conference of the Parties (COP) – to assess progress in dealing with climate change, and beginning in the mid-1990s, to negotiate the Kyoto Protocol to establish legally binding obligations for developed countries to reduce their greenhouse gas emissions. Starting in 2005 the conferences have also served as the "Conference of the Parties Serving as the Meeting of Parties to the Kyoto Protocol" (CMP); also parties to the convention that are not parties to the protocol can participate in protocol-related meetings as observers. From 2011 to 2015, the meetings were used to negotiate the Paris Agreement as part of the Durban platform, which created a general path towards climate action. Any final text of a COP must be agreed by consensus.
Ali Serim is an Istanbul-born Turkish author, diplomat, climate advocate, and publisher. His career spans multiple sectors, including climate change advocacy, diplomacy, public-private partnerships (PPP), and philanthropic work, particularly in support of Small Island Developing States (SIDS).
AminathShauna is a Maldivian politician and former Minister of the Environment, Climate Change, and Technology of the Maldives.
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The 2024 United Nations Climate Change Conference or Conference of the Parties of the UNFCCC, more commonly known as COP29, is the 29th United Nations Climate Change conference. COP29 is being held in Baku, Azerbaijan, from 11 to 22 November 2024. Mukhtar Babayev presides COP29, while Samir Nuriyev heads the Organising Committee.
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