EUR 300 million already committed for losses and damages caused by climate change | Environment

Loss and damage – loss & damage in UN climate jargon – concerns irrevocable damage caused by climate change and for which adaptation is no longer possible. The most vulnerable countries have been asking the rich countries for compensation for years and in this COP the topic was officially included on the agenda for the first time.

After the (modest) pledges by Scotland (€2.29m) and Wallonia (€1m) last year in the margins of COP26 in Glasgow, the number of pledges in the margins of COP27 has systematically increased. For example, Denmark has already allocated 10 million kroner (13 million euros) in September. Meanwhile Scotland and Wallonia have also increased their contributions.

Belgium has also earmarked €2.5m of the €25m pledged to Mozambique specifically for losses and damages at the start of COP27.

The greatest commitment, however, comes from Germany, which has allocated 170 million for its ‘Global Shield’ initiative, which aims to insure vulnerable countries from the damage caused by climate change. Other countries, including Canada and Ireland, have also made commitments. However, the NGOs fear that the initiative is partially missing its objective because it concerns insurance and not extra financial resources.

Promises also from New Zealand (almost 12 million euros) and Austria (50 million euros for the period 2023-2026).

In total, this amounts to around 300 million euros. NGOs welcome these initiatives, but for now it’s just a drop in the bucket. Hundreds if not trillions are needed to cover the actual damages. For example, the V20, which represents 58 of the most vulnerable countries, has estimated that the damages caused by climate change in its member states since 2000 already amount to $525 billion.