GLASGOW DIALOGUE ON LOSS AND DAMAGE: AIM TO STRENGTHEN COHERENCE AND COORDINATION

• Funding for climate loss and damage is slow and inadequate: most vulnerable countries demand more money and direct access to funds
• Real commitment is needed and the current system needs improvement
• New climate finance target for loss and damage: current resources are not enough, could need USD 1700 billion annually by 2050

A new negotiating table, the Glasgow Dialogue on Loss and Damage, was established at COP26, effectively a forum to discuss financing for activities to prevent, reduce and address the impacts of the most vulnerable countries affected by climate change. This year it held its third edition at the UNFCCC headquarters in Bonn, Germany. The first two dialogues had been staged at the 2022 and 2023 interim negotiations (and had been important, politically: more details in this article).

The GD3 (Glasgow Dialogue 3), at this year’s interim negotiations, focused on strengthening coherence and coordination between the different entities dealing with loss and damage, and the role of financing mechanisms in this context. It was also an opportunity to discuss progress and make further recommendations to expand or improve existing funding mechanisms and initiate new ones.

Similar to previous editions, GD3 discussions were held in plenary sessions and working groups to maximise opportunities for participation and facilitate focused discussions in an open and inclusive manner. The topics focused on guiding questions prepared by the SBI President with input from the WIM ExCom and the Santiago Network: 

• What experiences have countries gained to improve the coherence and coordination of loss and damage activities? What are the lessons learned from these experiences? What kind of technical support and capacity building could help to build coherence and coordination at country level?
• What technical assistance is needed to support the development of programmatic approaches to responding to damage and loss and to access the Operational Fund established by Decisions 1/CP.28 and 5/CMA? How can damage and loss funding be made available to reach those on the frontline of climate change impacts?

The debate highlighted the challenges faced by island nations and developing countries due to the loss and damage suffered as a result of the climate crisis. Some of these are catastrophic and extreme (floods, cyclones), while others are the result of slow processes that are proceeding inexorably (desertification, rising temperatures, melting glaciers, rising sea levels). In this regard, during the discussion, the Maldives delegates emphasised the serious impact that coral bleaching has on tourism and fishing, the country’s livelihood sectors. Vanuatu highlighted its proactivity by presenting four concrete examples: updating NDCs, setting a target for loss and damage, requesting specific support from the Santiago Network, and pilot projects ready to use the dedicated fund.

The Fiji Islands also emphasised the need for relocation of communities affected by rising sea levels and the increased frequency and intensity of tropical cyclones. The Least Developed Countries (LDCs) highlighted the lack of adequate tools and data to effectively address loss and damage. The European Union emphasised the importance of national bodies dedicated to these issues, as in the case of Vanuatu, and gave as an example its own intervention following extreme forest fires in European territory, for which it worked closely with the relevant national bodies, helping them and financing the reconstruction of the affected forests.

Palau criticised the slowness of actions and the lack of concrete results, despite the creation of new bodies such as the Santiago Network. He also pointed out the multiple problems related to the relocation of communities, which not only concern economic and political aspects, but also social and health issues.

Other nations, such as New Zealand, Senegal, Australia and Indonesia, provided updates on their actions and stressed the need for further funding. Finally, some non-governmental organizations emphasised the importance of involving affected communities in decision-making processes, particularly with regard to population transfers.

The GD3 highlighted the multiple challenges of coordinating funding mechanisms for loss and damage. Concrete efforts by all parties are needed to ensure that funding is accessible and timely for the most affected countries and communities.

The parties shared the view that the combination of Santiago Network, Loss & Damage Fund and WIM EXCom was the right framework to address the issue. Despite this, some elements may need revision. 

Developing countries, in particular, complain that the current resources allocated to L&D are few, spread across multiple funds and difficult to obtain. The timeframe between the request from States and the actual disbursement of funds is about nine months for funds that are already operational (thus excluding the new Loss and Damage Fund under construction under the World Bank). Such long lead times put the most vulnerable states that are now subject to extreme weather events on an annual basis in serious difficulties. Therefore, it is requested that access to funding be made easier, coordinated, quicker and more direct to the affected populations. 

As far as resources are concerned, as we mentioned in this article, to date the contributions to the Loss and Damage Fund that have been announced total some USD 700 million. These flows – which have neither yet been mobilised nor reached developing countries – are already far below actual needs. Considering 2022 alone, in fact, losses and damage related to climate and weather events in developing countries (including droughts, cyclones, floods and fires) are estimated at around USD 110 billion. 150 times more than what is currently in the fund. This figure, moreover, does not take into account smaller-scale climate events and long-term impacts (such as desertification) and not economic ones. One can, therefore, imagine that the real impact is even larger than currently estimated. It is also expected to increase in the future, reaching USD 1’100 billion per year in losses and damages in 2030 and USD 1’700 billion in 2050. 

To meet these growing needs, the demand from developing countries is twofold. On the one hand, to substantially increase resources and make them adequate to the actual loss and damage faced and, at the same time, to provide resources that are new, additional, predictable and in the form of grants and not loans.

It is also demanded by many states that the new climate finance goal (the New Collective Quantified Goal, discussed here) include resources for loss and damage. Article 9 of the Paris Agreement, in fact, describes the climate finance obligations of developed countries towards developing ones only in terms of mitigation and adaptation, making no mention of the new topic. In spite of this, an extensive reading carried out by Mexico would go in the direction of removing legal barriers to its introduction, especially in view of the centrality that the issue of loss and damage has achieved in recent years. Whether we will see it present in the new financial target will depend, therefore, solely on the negotiation process carried out here in Bonn and especially in Baku at the end of the year. 

Article by Anna Pelicci and Claudia Concaro, Italian Climate Network volunteers

Cover image: photo by Anna Pelicci