The Loss and Damage Finance Facility: Why and How
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Authors
Sharma-Khushal, Sindra
Schalatek, Liane
Singh, Harjeet
White, Heidi
Issue Date
2022
Type
Language
en
Keywords
Climate Change
Alternative Title
Abstract
We are in the era of Loss and Damage (L&D). The
hard limits to adaptation are being realised and
the scale of the challenge ahead is significant
as impacts of climate change are greater than
previously expected. At the climate change conference, COP26, the
negotiating bloc G77 & China proposed a solution
to the gap in finance available to address their
needs in the form of a L&D Finance Facility (LDFF). However, agreement could not be
secured for the LDFF’s establishment or a process
to do so. Instead, the Glasgow Dialogue (GD)
was established which presently remains to be
defined with clear milestones and outcomes. The objective of this paper is to contribute
to achieving the establishment and
operationalization of an LDFF that delivers on
the needs of developing countries at speed and
scale by explaining the why and how. The paper
explains why the LDFF is necessary before turning
to an analysis of the governing arrangements and
core operational functions for the LDFF. Scenarios
that elucidate the potential transformative value
of the LDFF are described before the paper
concludes with recommendations and a way
forward to COP27 and beyond with the GD
delivering concrete actions.