PUBLICATIONS CENTRE
ADDRESSING LOSS AND DAMAGE: INSIGHTS ON THE FUND AND THE GLOBAL SHIELD
Climate change is wreaking havoc on human lives, livelihoods and well-being in the world’s most vulnerable countries and communities. After decades of little to no progress, the agenda for loss and damage finance has shifted considerably in the past 12 months, with the announcement and launch of two major initiatives that aim to address aspects of this challenge. One is the Loss and Damage Fund agreed to at COP27, which has emerged from within the UNFCCC; the other is the Global Shield against Climate Risks, a joint G7 and V20 initiative.
This insight paper aims to improve the reader’s understanding of these two initiatives and provide insights into how thy may relate to each other, including possibilities for complementarity, and underlying tensions.
CONTRIBUTIONS AND CHALLENGES OF DISASTER RISK FINANCING AS A RESPONSE TO CLIMATE CHANGE INDUCED LOSSES AND DAMAGES
Human-induced climate change will continue to cause losses and damages, with vulnerable developing countries and communities that have contributed least to the climate crisis bearing the brunt of its consequences. Loss and Damage is the third pillar of the international climate regime in the 2015 Paris Agreement, alongside mitigation and adaptation.
In order to play a well-targeted and effective role, it is important to understand the applications and limits of Disaster Risk Finance as a response to climate-induced losses and damages. This paper explores how DRF instruments are being framed and understood within the panorama of Loss and Damage policy and finance agendas, highlighting areas of contention and sensitivity.
ANTICIPATORY CASH TRANSFERS IN CLIMATE DISASTER RESPONSE
In the face of increasing climate volatility and stretched aid budgets, more effective ways to support households in times of crisis are needed. This paper examines the welfare impact of an anticipatory cash transfer provided to households forecasted to experience extreme floods in Bangladesh.