{"id":55493,"date":"2023-05-23T18:21:32","date_gmt":"2023-05-23T18:21:32","guid":{"rendered":"https:\/\/www.climatepolicyinitiative.org\/?p=55493"},"modified":"2026-05-05T23:24:31","modified_gmt":"2026-05-05T23:24:31","slug":"beyond-adaptation-coming-to-terms-with-loss-damage","status":"publish","type":"post","link":"https:\/\/www.climatepolicyinitiative.org\/pt-br\/beyond-adaptation-coming-to-terms-with-loss-damage\/","title":{"rendered":"\u201cBeyond Adaptation\u201d: Coming to Terms with Loss &#038; Damage"},"content":{"rendered":"\n<p>Originally conceptualized by the Alliance of Small Island States (AOSIS) in 1991, the policy agenda regarding loss &amp; damage has been characterized by considerable ambiguity, complexity, and controversy as various actors have opined on the normative question: who should be held to account for the losses and damages associated with anthropogenic climate change, and on what basis? Coloring this difficult question is the troubling reality that people who contributed least to the problem are those first and most adversely affected by it.<a href=\"#_ftn1\" id=\"_ftnref1\">[1]<\/a>&nbsp;<\/p>\n\n\n\n<p>With countries formally, and finally, recognizing the need for loss &amp; damage finance at COP27, the coming years will demand a \u201cmosaic of solutions\u201d to put this policy agenda into practice, leaving less room to sidestep the issue, as has been the case in the past. This blog seeks to unpack the loss &amp; damage policy-finance agenda, reflecting on how we could, or should, define it from a climate finance tracking perspective. Definitional clarity is now an essential prerequisite for turning the <a href=\"https:\/\/unfccc.int\/news\/cop27-reaches-breakthrough-agreement-on-new-loss-and-damage-fund-for-vulnerable-countries\" target=\"_blank\" rel=\"noreferrer noopener\">Breakthrough Agreement<\/a> into breakthrough action.<\/p>\n\n\n\n<p>While loss &amp; damage (hereafter L&amp;D) continues to be interpreted differently by different actors, on certain points a (general) consensus has emerged:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Losses and damages can be categorized as either <strong>economic <\/strong>(those for which a monetary value is easily given), for example, loss of income and damage to assets; or <strong>non-economic <\/strong>(those for which a monetary value is not easily, or meaningfully, given), for example, loss of life and damage to cultural identity.<\/li><li>Losses and damages can arise from both <strong>chronic<\/strong> (slow-onset) <strong>events<\/strong> (for example, sea-level rise or glacial retreat) and <strong>acute<\/strong> (extreme) <strong>events<\/strong> (for example, flooding or drought).<\/li><li>L&amp;D can be considered the <strong>third pillar<\/strong> of climate action; that is, where <strong>(i)<\/strong> mitigation is insufficient and <strong>(ii)<\/strong> adaptation inadequate <strong>(iii)<\/strong> loss &amp; damage ensues (Broberg &amp; Romera, 2020).<\/li><li>L&amp;D, therefore, lies \u201c<strong>beyond adaptation<\/strong>;\u201d that is, where the limits \u2013 either soft or hard \u2013 to adaptation are reached and climate risks become<strong> unavoided<\/strong> (they could, in theory, be avoided but will not be due to some constraint) or <strong>unavoidable<\/strong> (Mechler <em>et al<\/em>., 2019).<\/li><\/ol>\n\n\n\n<p>Given points 3 and 4, and in light of the Paris Agreement which explicitly separates adaptation (Article 7) from L&amp;D (Article 8), efforts should be channelled into determining, in practical terms, how the boundaries between these concepts can be established. Based on CPI\u2019s experience in tracking adaptation finance, I propose that the following points concerning <em>temporality <\/em>and <em>typology<\/em> are considered in, or inform, efforts to delineate between adaptation finance and L&amp;D finance:<\/p>\n\n\n\n<p><strong>Temporality<\/strong>: the \u201cwhen\u201d<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Currently, adaptation is thought of in <strong>ex-ante<\/strong> terms; that is, adaptation is the label given to projects or activities designed to address a specific climate risk(s), with the intention of reducing vulnerability to that risk(s), thereby averting or minimizing the losses and damages it would otherwise cause.<\/li><li>L&amp;D could, then, be thought of in <strong>ex-post<\/strong> terms; that is, L&amp;D would be the label given to projects\/activities which, retrospectively, address the (unavoided; unavoidable) losses and damages \u2013 both economic and non-economic \u2013 resulting from an acute or chronic climate event.<\/li><\/ul>\n\n\n\n<p><strong>Typology<\/strong>: the \u201cwhat\u201d &amp; \u201chow\u201d<\/p>\n\n\n\n<p>(i) <strong>R-words<\/strong> &#8211; relief, rehabilitation, reconstruction, and resettlement<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Adaptation is the label given to projects\/activities which (intend to) increase <strong>resilience<\/strong> to a specific climate risk(s); that is, they increase the capacity of an individual, asset, or wider system to cope with a specific climate risk(s).<\/li><li>L&amp;D could, then, be the label given to projects\/activities which provide <strong>relief<\/strong>, <strong>rehabilitation<\/strong>, <strong>reconstruction<\/strong>, or <strong>resettlement<\/strong> in the face of an acute or chronic climate event (Practical Action, 2021). These words have the benefit of being inherently people-oriented \u2013 which L&amp;D activities are likely to be \u2013 but intentionally also work in relation to ecosystem- or asset-oriented L&amp;D activities. Arguably, ex-post disaster-risk management activities, which provide relief in the aftermath of a climate shock, should be tracked as L&amp;D finance, rather than adaptation finance as is currently the case.<\/li><\/ul>\n\n\n\n<p>(ii) <strong>Instruments<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Adaptation finance may be deployed in the form of grants, loans (concessional or non-concessional), policy-based financing and working capital, among others (EIB, 2022). In fact, CPI\u2019s 2021 <a href=\"https:\/\/www.climatepolicyinitiative.org\/publication\/global-landscape-of-climate-finance-2021\/\">Global Landscape of Climate Finance<\/a> showed that 72% of tracked adaptation finance in 2019\/2020 was deployed as debt. That is, many of the actors in the adaptation space (primarily DFIs) expect their money back with a return on the investment, rather than providing the funding as aid; this is a challenging reality for vulnerable countries already facing high debt exposure.<\/li><li>Viable financial instruments for the more urgent relief\/resettlement side of L&amp;D are likely to be narrower in range than what we currently see with adaptation finance; structured such that funding can be made available on very short notice (Climate Analytics, 2021). We could envisage a more blended approach, however, for the longer-term measures supporting rehabilitation\/reconstruction. Ultimately, there is a strong argument to be made that only non-debt-generating instruments would be appropriate for L&amp;D given, and so as not to worsen, the equity issue at the heart of the problem.<\/li><\/ul>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\">Three pillars of climate action<\/h3>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"421\" height=\"461\" src=\"https:\/\/www.climatepolicyinitiative.org\/wp-content\/uploads\/2023\/05\/Blog-Image.png\" alt=\"\" class=\"wp-image-55515\" srcset=\"https:\/\/www.climatepolicyinitiative.org\/wp-content\/uploads\/2023\/05\/Blog-Image.png 421w, https:\/\/www.climatepolicyinitiative.org\/wp-content\/uploads\/2023\/05\/Blog-Image-274x300.png 274w\" sizes=\"auto, (max-width: 421px) 100vw, 421px\" \/><\/figure>\n<\/div>\n\n\n<p>Unpacking the L&amp;D discourse, with a view towards operationalizing a dedicated Fund, is no small task and easily runs the risk of glossing over the many and important nuances which have enriched, but also complicated, the discussion since 1991. Nonetheless, writing from a climate finance tracking perspective in 2023, we need clear terminology and concrete typologies, with a consensus from the outset on the temporal dimension underpinning our work.<a id=\"_ftnref2\" href=\"#_ftn2\">[2]<\/a> Combining these practical requirements with the consensus points established in the literature, I suggest we approach L&amp;D from an <strong>ex-post perspective<\/strong>, preliminarily determine relevant activities according to the <strong>4 R\u2019s<\/strong> \u2013 relief, rehabilitation, reconstruction, and resettlement \u2013 and decide upon a <strong>typology of<\/strong> (acceptable and viable) <strong>financial instruments <\/strong>which could effectively and equitably address the losses and damages associated with anthropogenic climate change. In doing so, we may move to a clearer understanding of what L&amp;D finance should actually entail (a pressing agenda in the run-up to COP28) and, in turn, bolster the momentum to fully institutionalize and subsequently implement Loss &amp; Damage as the third pillar of climate action, alongside Mitigation and Adaptation.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>References<\/strong><\/p>\n\n\n\n<p>Broberg, Morten and Romera, Beatriz Martinez, 2020. \u201cLoss and damage after Paris: more bark than bite?\u201d Available at: <a href=\"https:\/\/www.tandfonline.com\/doi\/full\/10.1080\/14693062.2020.1778885\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/www.tandfonline.com\/doi\/full\/10.1080\/14693062.2020.1778885<\/a> &nbsp;&nbsp;<\/p>\n\n\n\n<p>Chancel, Lucas, Bothe, Philipp and Voituriez, Tancr\u00e8de, 2023. \u201cClimate Inequality Report 2023. Fair taxes for a sustainable future in the Global South.\u201d Available at: <a href=\"https:\/\/wid.world\/wp-content\/uploads\/2023\/01\/CBV2023-ClimateInequalityReport-2.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/wid.world\/wp-content\/uploads\/2023\/01\/CBV2023-ClimateInequalityReport-2.pdf<\/a> &nbsp;<\/p>\n\n\n\n<p>Climate Analytics, 2021. \u201cFacing the facts \u2013 the need for loss and damage finance can no longer be denied.\u201d Available at: <a href=\"https:\/\/climateanalytics.org\/blog\/2021\/facing-the-facts-the-need-for-loss-and-damage-finance-can-no-longer-be-denied\/\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/climateanalytics.org\/blog\/2021\/facing-the-facts-the-need-for-loss-and-damage-finance-can-no-longer-be-denied\/<\/a> &nbsp;<\/p>\n\n\n\n<p>Climate Policy Initiative (CPI), 2021. \u201cGlobal Landscape of Climate Finance 2021.\u201d Available at: <a href=\"https:\/\/www.climatepolicyinitiative.org\/publication\/global-landscape-of-climate-finance-2021\/\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/www.climatepolicyinitiative.org\/publication\/global-landscape-of-climate-finance-2021\/<\/a> &nbsp;<\/p>\n\n\n\n<p>European Investment Bank (EIB), 2022. \u201cJoint methodology for tracking climate change adaptation finance.\u201d Available at: <a href=\"https:\/\/www.eib.org\/en\/publications\/20220242-mdbs-joint-methodology-for-tracking-climate-change-adaptation-finance\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/www.eib.org\/en\/publications\/20220242-mdbs-joint-methodology-for-tracking-climate-change-adaptation-finance<\/a> &nbsp;<\/p>\n\n\n\n<p>Mechler, Reinhard, Bouwer, Laurens M., Schinko, Thomas, Surminski, Swenja, Linnerooth-Bayer, JoAnne (eds), 2019. \u201cLoss and Damage from Climate Change. Concepts, Methods and Policy Options.\u201d Available at: <a href=\"https:\/\/link.springer.com\/book\/10.1007\/978-3-319-72026-5\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/link.springer.com\/book\/10.1007\/978-3-319-72026-5<\/a> &nbsp;<\/p>\n\n\n\n<p>Practical Action, 2021. \u201cAssessing and addressing climate-induced loss and damage in Bangladesh.\u201d Available at: <a href=\"https:\/\/www.preventionweb.net\/media\/74453\/download\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/www.preventionweb.net\/media\/74453\/download<\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><a href=\"#_ftnref1\" id=\"_ftn1\">[1]<\/a> According to the Climate Inequality Report (Chancel <em>et al<\/em>., 2023), \u201cthe bottom 50% of the world population contributes to 12% of global emissions but is exposed to 75% of relative income losses due to climate change. Conversely, the top 10% of the world population is responsible for close to half of all emissions, but faces just 3% of relative income losses.\u201d<\/p>\n\n\n\n<p><a href=\"#_ftnref2\" id=\"_ftn2\">[2]<\/a> harmonizing terminology and typologies, with a common understanding of when in time you account for the project\/activity (i.e. at the stage of financial commitment rather than financial disbursement), has been essential for CPI to be able to provide consistent and comparable data, in turn producing a widely-accepted baseline against which to measure progress in global climate finance flows; see the <a href=\"https:\/\/www.climatepolicyinitiative.org\/publication\/global-landscape-of-climate-finance-a-decade-of-data\/\"><em>Global Landscape of Climate Finance: A Decade of Data<\/em><\/a><em>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This blog seeks to unpack the loss &#038; damage policy-finance agenda, reflecting on how we could, or should, define it from a climate finance tracking perspective. <\/p>\n","protected":false},"author":245,"featured_media":55519,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"programs":[1761],"regions":[],"topics":[1010,1199],"collaborations":[],"class_list":["post-55493","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","programs-climate-finance-tracking","topics-adaptation-and-resilience","topics-finance"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>\u201cBeyond Adaptation\u201d: Coming to Terms with Loss &amp; 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