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CCXG Forum, March 2023, Michai Robertson

  1. LOSS AND DAMAGE FINANCE UNDERSTANDING ITS SCOPE Michai Robertson Senior Advisor (Finance), Alliance of Small Island States March 2023
  2. Scope of Loss & Damage Finance Quality & Quantity: ‘new, additional, predictable and adequate financial resources’ Recipients: ‘to assist developing countries that are particularly vulnerable to the adverse effects of climate change’ Focus / Use of Funds: ‘in responding to economic and non-economic loss and damage’ Link to Climate Change: ‘associated with the adverse effects of climate change, including extreme weather events and slow onset events,’ Temporal Scope: ‘especially in the context of ongoing and ex post (including rehabilitation, recovery and reconstruction) action’ COP 27 & CMA 4 Decisions: Paragraph 1
  3. Scope of New Funding Arrangements Primary focus of the new funding arrangements is on addressing actual loss and damage (i.e. ex- post and ongoing response) while acknowledging that the support it provides for addressing must also seek to: 1. minimize expected loss and damage to the greatest extent possible (i.e. adaptation co-benefits / resilience building), and safeguard against maladaptation; and 2. pursue efforts to contribute to the overall averting of future loss and damage (i.e. mitigation co- benefits). NOTE: Increase in co-benefits typically correlates to an increase in cost for said activities Mitigation (Averting Future Loss & Damage) Adaptation (Minimizing Expected Loss & Damage) Loss and Damage Response (Addressing Actual Loss & Damage) The point at which the event (extreme weather or slow onset) occurs (i.e. response in the ex-post or ongoing context) ANTICIPATION (THE BEFORE) REACTION (THE AFTER)
  4. Placing the Fund in the International Public Finance Landscape The point at which the event occurs (extreme weather or slow onset) Development Finance (Baseline funding for development) Adaptation Finance (New and additional funding for the incremental costs of preparing for anticipated loss and damage) Humanitarian Assistance (Altruistic funding for saving lives, alleviating suffering and maintaining human dignity after conflict, shocks and natural disasters) For EWEs primarily Loss and Damage Response Finance (New and additional funding for addressing actual loss and damage) • World Bank (WB) • Regional development banks • International Monetary Fund (IMF) • Global Environment Facility SCCF & LDCF • Adaptation Fund • Green Climate Fund • WB’s Global Facility for Disaster Reduction and Recovery (GFDRR) • IMFs Resilience and Sustinable Trust • UN Central Emergency Response Fund (CERF) & Country-Based Pooled Fund (CBPF) • International Red Cross & Red Crescent (IFRC) Disaster Response Emergency Fund (DERF) • UNSECO Rapid Response Facility (RRF) • WHO Contigency Fund for Emergencies (CFE) • UNICEF Global Humanitarian Thematic Funding (GHTF) • Loss and Damage Fund
  5. AOSIS Guiding Principles Guiding principles for the Fund and other new funding arrangements: • Focus on addressing loss and damage and acknowledgement of importance of minimizing & averting • Recognition of the connection to climate inaction • Provision of support on cooperative and facilitative basis • Adoption of a high risk appetite in programming by the Fund • Provision of support in a manner that is: • timely for a response that can actually supplement any other existing finance types (e.g. humanitarian assistance), especially for addressing any type of loss and damage from extreme weather events; and • programmatic, especially for addressing any type of loss and damage from slow onset events • Balanced and equitable enhanced direct access to funding, especially through existing regional and national entities, and local non-State actor • Active involvement of civil society in Fund operations As agreed in late 2022
  6. AOSIS Non-Exhaustive List of Activities Eligible for Support As agreed in late 2022 Economic Non-Economic Enabling Activities (Potential Linkage to SNLD) Social protection support Memorialization Long term systematic observation and data collection Terrestrial area elevation Health rehabilitation services and relief (mental and physical) Long term capacity building Debris clean-up and decontamination services Education relief Infrastructure rehabilitation Displacement coordination and response Culture and heritage restoration Land transfer as land territory (inclusive of corresponding citizen rights for any displaced people) Ecosystem restoration Culture and heritage restoration Public budget support Ecosystem restoration Monetary funding support Debt relief support Catastrophe bonds support Insurance support
  7. Thank You! Michai Robertson (