Editor’s choice
Editor’s choice
SEI experts detail options for countries to generate loss and damage funding for lower-income nations who bear the brunt of the effects of climate change.
Estimates suggest that loss and damage (L&D) finance needs in lower-income countries could amount to USD 400 billion to 1.6 trillion per year by 2030. Currently, however, global pledges to the newly created Fund for responding to Loss and Damage (FRLD) only amount to USD 745 million as of December 2024 – a mere 0.04-0.1% of finance needs per year.
Responding to this significant gap, this brief identifies different innovative instruments that could be implemented to generate additional finance for L&D. The authors synthesize existing knowledge and assessments on the suitability of these instruments for raising sufficient L&D finance in a manner that adheres to the equity principles of historical responsibility for climate change.
Following this synthesis, the experts recommend how high-income countries, who have historically been major polluters, can push for the implementation of these instruments by engaging in various international forums.
Project / Vulnerable countries are already experiencing severe losses and damages from unavoidable climate change impacts. They urgently need financial support.
Journal article / This journal article calls for more national and sub-national evaluations of adaptation finance to determine whether money reaches the most vulnerable groups.
SEI working paper / In this working paper, the authors develop a set of guiding questions for determining the extent to which international finance reforms are decolonial.
SEI brief / The authors propose a framework for distributive equity of adaptation finance at the national and subnational levels.
