Financing Loss and Damage
German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE)
The workshop kicked off with an introduction to the idea of Loss and Damage in the context of the UNFCCC and set the stage to discuss how the issue of Loss and Damage has been evolving since COP-19 in Warsaw via COP-21 in Paris towards COP-22 in Marrakesh and beyond. Dedicated workshop sessions notably included a review of pertinent language in the UNFCCC's Warsaw International Mechanism (WIM), the Paris Agreement, and documents of the WIM Executive Committee, and discussed different financing options and their appropriateness for addressing Loss and Damage in the context of the UNFCCC.
Specifically, the workshop
- discussed the WIM Excomm's Action Area 7 text, which mentions comprehensive risk management capacity with risk pooling and transfer; catastrophe risk insurance; contingency finance; climate-themed bonds and their certification; catastrophe bonds; financing approaches to making development climate resilient, and other innovative financial instruments and tools
- reviewed innovative financial instruments including a Financial Transaction Tax, the International Air Travel Adaptation Levy (IATAL), the Solidarity levy, Bunker fuels levy, Fossil fuel majors tax/levy (carbon levy), a global carbon tax, and others, and discuss their appropriateness and political barriers and avenues for progress.