The document discusses funding for loss and damage from climate change impacts. It notes that there are currently major funding gaps, particularly for addressing loss and damage. The needs for developing countries are estimated to be $580 billion by 2030 and $1.7 trillion by 2050. Currently, there is no explicit funding for loss and damage within the operating entities of the UNFCCC financial mechanism like the GCF. It discusses some potential alternatives for funding loss and damage both within and outside the UNFCCC. It also outlines some considerations for a dedicated loss and damage fund, including that all developing countries should be eligible and it should operate on a grant basis.

1. Climate Change Expert Group
(CCXG)
21-22 March 2023
UNDERSTANDING THE SCOPE OF FUNDING FOR L&D
Angela Patricia Rivera Galvis

2. Resultados COP27
The views presented do not represent the position of the Colombian negotiating
group under the UNFCCC and are the views of the expert in her personal
capacity.
1. SETTING THE SCENE

3. GAPS IN THE CURRENT LOSS AND DAMAGE ECOSYSTEM
ü Big financial gaps exist in all of three areas of averting, minimizing and
addressing loss and damage, in particular, “addressing” loss and damage.
ü There are also major gaps related to the appropriate consideration and
funding for actions related to non-economic loss and damage, as well as loss
and damage that resulting from slow onset events.
ü The needs for developing countries on loss and damage start in USD 580
billion by 2030 and end up in USD 1.7 trillions by 2050 approximately.
Generalities

4. FINANCE CURRENT STATUS
OPERATING
ENTITIES OF
THE
FINANCIAL
MECHANISM
(GCF, GEF) and
AF
1. There is no explicit labelled financing of loss and damage in any of the operating
entities of the Financial Mechanism, as well as from the GEF, the AF or the GCF.
2. The Adaptation Fund is focused on adaptation and resilience projects and
programmes that may help in averting and minimising losses and damages. It is
also a Fund that over 20 years of existence has only provided over USD 500
million.
3. The GEF only provides a very small amount of its resources for adaptation,
through the Least Developed Countries Fund - LDCF, which has a limited scope,
and theThe Special Climate Change Fund- SCCF, which has limited resources.
4. The GCF has financed a few isolated projects related to loss and damage, mainly
focused on disaster risk management

5. Resultados COP27
2. TYPES OF FUNDING
NEEDED TO AVERT,
MINIMIZE AND ADDRESS
L&D

6. POSSIBLE ALTERNATIVES FOR FINANCING FOR L&D
OUSIDE THE UNFCCC
1. Taxes on economic activities that contribute to increased sensitivity and/or
exposure to extreme meteorological and/or climatic events in the territories
could be contemplated.
2. Public-private insurance for all sectors could be a financing alternative.
3. Debt relief and debt –for- nature and climate action: biodiversity (ecosystems
and ecosystem services) should be valued
4. Initiatives such as the UNSG early warning systems or the G7 Global Shield,
need to be recognized.
5. Catastrophe Deferred Drawdown (CatDDO): A contingent financing line that
provides immediate liquidity to countries to address shocks related to natural
disasters and/or health-related events
6. Facilitating access to the Global Facility for Disaster Reduction and Recovery
(GFDRR) from World Bank.
INSIDE THE UNFCCC
1. A dedicated fund for L&D under the Convention
as a main vehicle for delivering rapid L&D
support.
• Short -term finance
• Long- term finance
2. Other UNFCCC Funds ( eg. GCF, AF)

7. Resultados COP27
3. CONSIDERATIONS FOR L&D
FUNDING

8. CONSIDERATIONS NEED TO BE TAKEN INTO ACCOUNT
FOR L&D FUNDING
ü Eligibility- all developing countries should be eligible for L&D funding.
ü Direct access.
ü Grant basis.
ü Base of contributors.
ü Bottom-up approach, especially for non-economic loss issues.
ü Damage cost estimate methodologies and other approximations to evaluate the L&D in economic
and non-economic losses: rapid Loss and Damage assessment methodologies should be supported.
ü In coordination with the risk management system. If each country has a rapid loss and damage
assessment methodologies, they will have better and clearer arguments to apply for money from the
fund.

9. THANK YOU!