Can Kerala Access Funds from the Loss and Damage Fund?

Can Kerala Access Funds from the Loss and Damage Fund?

Sub : Env

Sec: Convention

Why This is in News

Kerala recently faced devastating landslides in Wayanad district, sparking discussions about whether subnational entities like states or local communities can access financial compensation from the United Nations Framework Convention on Climate Change (UNFCCC)’s Loss and Damage Fund (LDF). The complexities of accessing such international climate finance have brought this issue to the forefront of policy discussions.

What is the Loss and Damage Fund?

The Loss and Damage Fund (LDF) was established at COP27 in Egypt (2022) to provide financial support to regions impacted by both economic and non-economic losses due to climate change. These losses stem from extreme weather events and long-term processes like rising sea levels. The Fund is managed by a Governing Board and the World Bank serves as its interim trustee.

Purpose: To assist vulnerable regions suffering from climate impacts.

Key Features:

The LDF is a mechanism established to support poorer nations, particularly small island nations like Tonga and Fiji, that contribute minimally to global emissions but face disproportionate risks from climate change.

Principle: The fund operates on the “Polluter Pays Principle”. This principle holds that nations responsible for the bulk of historical emissions, such as developed countries, are liable to compensate poorer nations impacted by climate change.

Recent Commitment: At COP 28, a commitment of $475 million has been pledged towards the fund.

History of the Loss and Damage Movement

The movement for a Loss and Damage Fund spans three decades and was initiated by the island nation of Vanuatu and the Alliance of Small Island States (AOSIS). The major milestones in the progress of the fund at various COP meetings are summarized below:

About UNFCCC COP 27 (2022)

• Held in Sharm El-Sheikh, Egypt from November 6-18, 2022.
• Focused on “Delivering for People and the Planet,” emphasizing the need for urgent global climate action to limit global temperature rise to 5°C.
• The Global Stocktake process was initiated.
• Launched a Sharm-El-Sheikh Adaptation Agenda, a global roadmap to adaptation and resilience by 2030.
• Established the Just Transition Work Programme.

India’s Role in Climate Negotiations

India has experienced over $56 billion in damages from weather-related disasters between 2019 and 2023. Despite these losses, India’s climate policies have largely focused on mitigation rather than adaptation.

Limited Participation in LDF Dialogues: India has not actively engaged in Loss and Damage dialogues at COP meetings, despite regions being highly vulnerable.

Need for Legal Framework: India lacks a clear legal framework for managing climate finance for loss and damage. This includes a focus on locally led adaptation to support vulnerable communities.

State Interventions: State governments feel the need for adaptation and loss and damage policies more acutely. In Kerala, the financial burden of disaster recovery often falls on the state itself.

Rebuild Kerala Development Programme: After the devastating 2018 floods, Kerala launched this program, funded by loans from the World Bank and KfW Development Bank.

To ensure better access to international climate funds, especially the LDF, India must:

Establish a clear policy framework focusing on locally led adaptation.

Advocate for decentralised fund disbursement methods in international climate negotiations.

Improve disaster damage assessments, ensuring all loss and damage qualify for financial support.