Funding pledge for loss and damage

An additional £5 million of funding to tackle loss and damage has been announced by First Minister Nicola Sturgeon at the COP27 climate summit.

The funds take Scotland’s commitment to addressing loss and damage caused by the climate crisis to £7 million and will enable communities to take direct action to address the impacts of loss and damage. This includes slow-onset effects, such as sea level rise and non-economic effects, such as the loss of cultural identity. It will also help to tackle existing inequalities, including gender inequalities, which are exacerbated by the effects of climate change.

Meanwhile a summary report has been published following on from October’s international loss and damage conference hosted by the Scottish Government in Edinburgh. Addressing Loss and Damage: Practical Action highlights the clear funding gap for action to address non-economic and slow-onset loss and damage ahead of a more extensive report to follow COP27.

In line with the conclusions of the conference, the delivery of grant funding rather than loans will ensure no additional debt burden for recipient countries, and that the process will be community-led and owned.

Drawn from the £36 million climate justice fund, grants will be delivered over the next three years in a way that ensures communities in countries most impacted by the climate crisis have a clearer say on how the funds should be allocated.

Speaking ahead of a panel discussion on loss and damage on the second day of COP27, First Minister Nicola Sturgeon said:

“In virtually everything we do on loss and damage, Scotland is trying to ensure that we listen to international perspectives – especially the perspectives of the Global South. After all, for more than 30 years now - since the views of island states were first ignored – decisions at COP have been dominated by the voices of the Global North.

“With loss and damage now on the formal agenda for the first time, this COP can mark a turning point in ensuring the views, experiences and perspectives of the Global South assume a far more central role. If that does happen it will lead to greater progress on loss and damage and will also, I hope, lead to quicker action on other aspects of climate change. I encourage all parties to make space for serious, open and honest discussion over the next two weeks.

“The funding Scotland has announced today is a small sum in terms of the overall scale of the loss and damage that developing countries face, but I hope that it sends an important message.

“As Denmark and Wallonia have shown, governments can act now on loss and damage if we want to. We don’t need to wait for a consensus decision at COP – we can start funding programmes straight away.

“I very much hope that we will make collective progress on loss and damage at this COP. If that doesn’t happen, I expect that more and more governments will take action on their own – my belief is that as we do, it will create a momentum for change which will feed into future COP summits.”

Professor Saleem Huq, Director of the International Centre for Climate Change and Development, said:

“The Scottish Government’s leadership in this area, including this latest funding pledge, is welcome and I hope it will prove an inspiration to other countries to take action to provide funding for loss and damage with urgency at COP27.”

Elizabeth Wathuti, young Kenyan Environmentalist and Climate Activist, said:

“From devastating flooding to the prolonged droughts in Africa, frontline communities like mine are bearing the burden of a crisis they did not cause. Rich countries beginning to recognise the need to address loss and damage is a step in the right direction. But to deliver on their promises, real political commitment and collective effort from developed countries through a loss and damage finance facility is crucial. We need permanent, reliable and sufficient funding.”

Background

Addressing Loss and Damage: Practical Action 

COP27 - Loss and Damage Panel: First Minister's speech - 8 November 2022 - gov.scot (www.gov.scot)

Climate justice - gov.scot (www.gov.scot)

Climate Justice Fund allocations this Parliamentary term:

£24m for Climate Just Communities;

£2m for addressing loss and damage (COP26 announcement), comprising:

• £1m partnership with CJRF
• £500k tropical Storm Ana loss and damage programme in Malawi
• £150k ICCCAD research on strategic l&d plans
• £75k SEI research on L&D principles