Our Demands

The urgent need for the L&D Fund to be up and running as soon as possible (after COP28) in order to immediately proceed with resource mobilization of adequate, grants-based resources

The L&D Fund must be consistent with the Do-No-Harm principle, and its instruments and mechanisms for raising funds must not lead to further impoverishment, disempowerment, and discrimination of marginalized people and communities in the Global South, or cause further destruction of the environment

L&D Fund must follow a quick response approach to facilitate a rapid financial disbursement mechanism via a trigger mechanism that will ensure funds will be readily and efficiently available to support recovery actions.

Governments of the Global North want to limit the number of Fund recipients (“vulnerable communities and groups”), while broadening the scope of countries that should pay. Based on the principle of CBDR, resources for the L&D Fund as part of the financial mechanisms under the UNFCCC, must be provided by the governments of the Global North to developing countries.

In accordance with the Global South’s right to reparations, only grants-based financing is the acceptable modality in the provision of the Loss and Damage finance. Developing countries that are already struggling with both the debt and climate crises, must not be forced to take on more debt to pay for a crisis it did not create. Mechanisms that involve carbon market speculation, which runs counter to the equitable allocation of emissions rights, must be excluded.

Insurance mechanisms such as the Global Shield against Climate Risks of the G7 and V20 countries have emerged as another alternative to cover L&D costs. While believed to provide a predictable and reliable source of financing to support climate recovery and rebuilding efforts, insurance mechanisms do not cover all types of climate change-related risks, especially non-economic losses and damages that are difficult to predict or quantify. Given the complexity of the climate impacts to people and communities and the total amount of resources required to address the mitigation, adaptation and loss and damage needs of the Global South, resource mobilization for L&D must go above and beyond insurance premiums.