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Loss and Damage Fund (LDF) in Climate Negotiations - Coggle Diagram
Loss and Damage Fund (LDF)
in Climate Negotiations
Central Idea
Outcome of tough negotiations at COP 27 in Egypt in 2022.
Recent meetings of the Transitional Committee (TC) to operationalize the fund have encountered major roadblocks
India's stance on inclusion of developing nations.
Loss and Damage Fund in focus at UNFCCC COP 28 in the UAE.
What is LDF?
Represents irreversible consequences of climate change.
Fund based on "polluters pay principle."
-Mitigation, Adaptation, Loss and Damage.
Third pillar of climate change response.
Targets poorer nations vulnerable to extreme climate events.
Genesis of LDF
Milestones at
UNFCCC COPs:
COP 26, 2021: Glasgow Dialogue on finance for L&D.
COP 27, 2022: Agreement to set up L&D fund and Transitional Committee (TC).
COP 25, 2019: Santiago Network for L&D set up.
COP 19, 2013: Formal agreement to establish L&D fund.
Initiated by Vanuatu and the Alliance of Small Island States.
Challenges in
operationalization
Rejection of Common But Differentiated Responsibilities (CBDR) principle.
No consensus on the size of the fund.
Reluctance of developed countries to contribute.
Assessment of losses and difficulties in ascertaining climate change impact.
Hosting at World Bank and high overhead fees.
India's demand for inclusion of developing countries.
Implications of
Impasse
Spurs internal conflicts and exacerbates global divides.
Increases humanitarian crises and environmental degradation.
Breakdown of diplomatic efforts to address climate change.
Threatens climate justice.
Way Forward
Consider an international insurance pool.
Explore windfall tax on oil and gas companies' profits.
Implement the "Global Shield Scheme against climate risks" vigorously until LDF operationalization.
Sustain political commitment for LDF, similar to Green Climate Fund.