Footing the bill: fair finance for loss and damage in an era of escalating climate impacts

Publication date: 7 June 2022
Authors: Tracy Carty, Lyndsay Walsh

The world has entered a new and dangerous era of climate change impacts, causing huge loss and damage and driving up inequality in the world’s poorest countries and communities that have contributed least to the climate crisis. New research by Oxfam estimates that funding requirements for UN humanitarian appeals linked to extreme weather are eight times higher than they were 20 years ago, and over the past five years nearly half of appeal requirements have gone unmet. Funding for emergency humanitarian response is piecemeal and painfully inadequate, as is broader support to address loss and damage such as rebuilding homes and vital infrastructure.

Scaled-up financial support from governments, corporations and individuals most responsible for causing the climate crisis, and most able to pay, is an immediate necessity. A new finance facility must be created to help ensure that finance to address loss and damage is accessible and sustained, is additional to adaptation, mitigation and ODA commitments, and is delivered in accordance with the principles of climate justice.