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Why Do Developing Countries Need Support to Address Loss and Damage?

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Why Do Developing Countries Need Support to Address Loss and Damage? UNPACKING FINANCE FOR LOSS AND DAMAGE Why do developing countries PAPER TWO PAPER need support to address loss and damage? What is loss and damage? Loss and damage1 has been defined as the Loss and Damage became officially recognised impacts of climate change which are not avoided at COP 19 in 2013 after the catastrophic by mitigation, adaptation and other measures effects of Typhoon Haiyan (also known as such as disaster risk management (Verheyen, Super Typhoon Yolanda) on the people of the 2012; Roberts and Pelling, 2018). It has both Philippines made it apparent that vulnerable economic and non-economic costs and results developing countries required significant levels from both extreme weather events like hurricanes of support in the face of such widespread and floods and slow onset climatic processes such devastation. In 2015, at COP 21, Loss and as sea level rise and salinisation. Loss and damage Damage was included as a distinct article in includes permanent and irreversible losses such the Paris Agreement, separate from adaptation. as to lives, livelihoods, homes and territory, for This was an important milestone as developing which an economic value can be calculated and countries have long stressed that loss and also to non-economic impacts, such as the loss of damage refers to climate change impacts that culture, identity and biodiversity, which cannot be are “beyond adaptation”. quantified in monetary terms. 1 How does loss and damage manifest on the ground in vulnerable developing countries? In most parts of the world, the most vulnerable people, households and communities, which results in both communities and countries are grappling with multiple economic and non-economic loss and damage. Non- climate-related hazards simultaneously and incurring a economic loss and damage includes, but is not limited spectrum of loss and damage, both economic and non- to, the loss of culture and biodiversity, as well as economic in nature. These include both extreme weather repercussions for both physical and mental health (see: events that manifest rapidly and slow onset climatic Morissey and Oliver-Smith, 2013). processes, the impacts of which emerge over time but which can be even more severe in nature.2 Cyclone Idai, which hit southern Africa in the spring of 2019, damaged 100,000 homes, one million acres Extreme weather events like cyclones cause damage of crops and caused billions of USD in damage to to housing and infrastructure and result in the loss of infrastructure. As a result of the cyclone, 146,000 livestock and crops. They can also result in the loss people were displaced (Podesta, 2019). In the midst of of lives, profoundly disrupt livelihoods and displace the COVID-19 pandemic, several regions of the world 1 Loss and Damage (capitalised) has been used to refer to the spectrum of policies which can be implemented to address loss and damage while loss and damage refers to the manifestation of the impacts of climate change (IPCC, 2018). 2 Slow onset climatic processes (referred to as “slow onset events” under the UNFCCC) are defined as including: increasing temperatures; desertification; loss of biodiversity; land and forest degradation; glacial retreat and related impacts; ocean acidification; sea level rise; and salinisation (UNFCCC, 2011). 1 have been struck by cyclones or hurricanes including the prone regions of Africa particularly hard (IPCC, 2019). Pacific, the Caribbean, South Asia and the Americas. Food insecurity is on the rise in sub-Saharan Africa and Vanuatu has been hit particularly hard. In the wake undernourishment has increased 46 percent between of Cyclone Harold, which made landfall in Vanuatu in 2012 and 2018 according to the Food and Agricultural the spring of 2020, the economic loss and damage Organization (WMO, 2020). At the end of 2018, almost was estimated to be more than 440 million USD. The 12 million people within Ethiopia, Kenya and Somalia Internal Displacement Monitoring Centre estimates were severely food insecure (Ibid). While climate change that 50,000 people in the Pacific region are in danger is not the only driver of migration worldwide, displaced of losing their homes each year. Given that it was populations often live in climate “hotspots” in which estimated that 90 percent of the buildings in Vanuatu’s they are exposed to both extreme weather events and capital were damaged by Cyclone Harold, this might slow onset climatic processes (Ibid). In the second be a gross underestimate as the impacts of climate half of 2018, heavy rains fell on drought impacted change increase in magnitude and frequency. Decision areas causing widespread flooding leading to loss of makers in Vanuatu are preparing to bring a case to the lives, livestock and damage to crops; all of which are International Court of Justice to demand compensation prompting further displacement (WMO, 2020). This for the economic costs of climate-related events like does not take into consideration the profound impact Cyclone Harold and its predecessor Pam, which hit of non-economic loss and damage which result from the country in 2015 (Esswein and Zernack, 2020). In climate change impacts. January 2021 Cyclone Ana hit neighbouring Fiji, just a month after Cyclone Yasa hit the country’s northern Loss and damage impacts the most vulnerable and islands. Ana left 10,000 people temporarily homeless marginalised in vulnerable developing countries and and caused widespread damage to infrastructure and can impede both human rights, in particular women’s crops. The increasing frequency and magnitude of rights (Women and Gender Constituency, 2019). cyclones is repeatedly overwhelming the capacity of Women and girls in vulnerable countries on average communities and countries to respond to the loss and experience greater levels of loss and damage than their damage they leave in their wake. male counterparts. Women often have unequal access to resources and decision making processes and have Slow onset climatic processes also give rise to a limited mobility (Shahid, 2018). Due to socio-cultural spectrum of loss and damage. Glacial retreat is a key norms women also often have limited access to the concern for countries, communities and households information and skills needed to avoid loss and damage in both the Andes and Himalayan regions. The rapid (Ibid) and are often not involved in decision making melting of glaciers is affecting the availability of processes about climate change responses (CARE, water for drinking, irrigation and the generation 2020b). Gender inequality can also deepen further of hydropower, as well as economic activities that when families decide not to send girls to school or force depend on stable water supplies (UNESCO, 2018). them into early marriage when household income falls As the glaciers continue to recede, runoff will likely due to the impacts of climate change (CARE, 2020a). be concentrated in the wet season with little flow during the dry season. This will likely lead to more The gap between the economic costs of loss and frequent droughts (Ibid). The increased runoff also damage and the level of funding vulnerable developing feeds glacier lakes which are at increasing risk of countries receive to address loss and damage continues overflowing, threatening lives and livelihoods (DW, to widen. In the meantime, developing countries are 2019) and causing potentially widespread displacement making considerable efforts to address loss and throughout the region. In 2016 a Peruvian farmer damage at both the national and sub-national levels brought a legal case against a German utility company with their own resources. The Government of Fiji began for its share (based on its estimated contribution to supporting the relocation of villages, which were moved global average warming) of the costs of the protective due to coastal erosion and flooding in 2014 (Hirsch et measures he has implemented to protect his land (DW, al., 2019). In 2018, Fiji developed Planned Relocation 2019). Glacial retreat also causes non-economic loss Guidelines to support relocation efforts within the and damage in the form of loss of culture and the country. Other vulnerable developing countries are social and psychological impacts of forced migration also increasingly focusing on supporting those forced and relocation. Another slow onset climatic process, to move by climate-related loss and damage. In 2019, increasing temperatures, is manifesting in loss and the Climate Bridge Fund was established in Bangladesh damage worldwide in both developing and developed by the Bangladesh Rural Advancement Committee countries. With each 1°C of warming beyond the (BRAC) to contribute short term funding for projects present, an estimated 1 billion people will be impacted that provide services to and develop infrastructure by extreme heat, as even a small increase in average for climate-induced migrants. These efforts have temperature creates a large change in extreme opportunity costs in that the resources dedicated to temperatures (BBC, 2020). If current trends continue, addressing loss and damage could be used to support it may not be possible to live in a number of cities by sustainable development and to fund public education 2050, with increasing temperatures increasing the risk and health initiatives. Vulnerable developing countries of wildfires and also impacting global food productivity simply cannot afford the escalating costs of preparing and exacerbating competition for water resources (Ibid). for and addressing loss and damage. When impacted by extreme or slow onset loss and damage events, they Climate change has increased the frequency and require support. severity of drought worldwide, hitting the drought 2 What type of support is needed to address loss and damage? In the first brief of this series, we reported that by 2030 However, while addressing loss and damage is complex, the economic cost of loss and damage is projected the needs are very clear. To unpack what is needed to to be between 290 billion and 580 billion USD in prepare for and respond to loss and damage, we have developing countries (Markandya and González-Eguino, drawn from the submissions of vulnerable developing 2018).
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