Scottish Government at COP26: What was achieved?

Case Study: Funding for loss and damage

Context

Loss and Damage has evolved over the past decade to become what many consider the third pillar under the UNFCCC alongside mitigation and adaptation. However, channelling finance to the most vulnerable countries to address Loss and Damage remains a controversial issue, particularly when discussed in the context of liability and compensation. In the lead up to COP26, the vulnerable developing countries branded Loss and Damage as the make-or-break issue for determining the success of the conference.

What happened?

During the opening week of COP26, in a ground-breaking announcement the First Minister declared Scotland would be the first developed nation to pledge Loss and Damage finance. £1 million will be allocated from the Scottish Government’s Climate Justice Fund to grant fund a partnership with the Climate Justice Resilience Fund. This partnership will support vulnerable communities prepare for and adapt to climate change, tackle structural inequalities and recover from climate induced loss and damage.

Over the course of the conference, the First Minister called for global leaders to step up and deliver on climate finance. In efforts to lead by example, the Scottish Government further announced that the Climate Justice Fund would treble to £36 million over the next Parliament, committing an extra £1 million of this to Loss and Damage.

What was the impact?

Scotland’s leadership encouraged others to commit funding explicitly for addressing loss and damage including by five philanthropies which together committed US$3 million and the government of Wallonia, a region of Belgium, which committed €1 million. Scotland’s contribution received global recognition; including by the UN General Secretary Antonio Guterres and by Climate Action Network which presented Scotland with the Ray of the Day award for breaking the taboo around Loss and Damage financing and showing leadership in supporting victims of climate change.

What are the next steps?

The Scottish Government will continue the momentum on loss and damage by playing a convening and leadership role over 2022. As one of the first movers on loss and damage, we will endeavour to share our learning and learn from those to who are, or hope to, address loss and damage. We are currently reviewing the best way to spend our financial contribution in order to have the greatest positive impact.