Introduction

• Context: Landslides in Wayanad, Kerala, have prompted discussions on accessing the UNFCCC’s Loss and Damage Fund (LDF).
• Complexity: The process of accessing international climate funds, especially for local communities at the sub-national level, is complex.

What is the Loss and Damage Fund?

• Establishment: Created at COP27 in Egypt, 2022.
• Purpose: Provides financial support for economic and non-economic losses due to climate change (e.g., extreme weather events, rising sea levels).
• Administration:
  • Governing Board: Oversees fund disbursement.
  • World Bank: Serves as interim trustee.
• Disbursement Mechanisms:
  • Direct access
  • Small grants
  • Rapid disbursement options
• Challenges: Funds may be slow to reach affected areas, particularly sub-national communities.

India’s Role and Challenges

• Faced over $56 billion in damages from weather-related disasters (2019-2023).
• Emphasized on mitigation over adaptation in National Climate Action Policy and budgets.
• Limited engagement in Loss and Damage dialogues at COP meetings.
• Need for Framework:
  • Need for clear legal and policy frameworks for climate finance, especially for adaptation and loss and damage.
  • Climate Finance Taxonomy: Introduced in Union Budget 2024, raising expectations for increased international finance.
• Advocacy: India should push for decentralized fund disbursement methods from the LDF.

State Interventions

• Local Adaptation Needs:
  • Kerala’s Example: State government bore the financial burden of disaster recovery.
  • Rebuild Kerala Development Programme:
    • Funded by World Bank and KfW Development Bank.
    • Focused on infrastructure reconstruction post-August 2018 floods.
• Assessment Challenges:
  • Standardization Issues: Lack of standardized methods for assessing disaster-related damages.
  • Implications: Potential unassessed losses might affect eligibility for LDF assistance.

Conclusion

• Policy Recommendations:
  • Domestic Policy Framework: Establish clearer guidelines for accessing loss and damage funds.
  • Adaptation Focus: Prioritize locally led adaptation strategies.
• Future Directions: Address challenges in accessing and managing climate finance to better protect against climate change impacts.