Greenhouse gas emissions from a paper mill in Sweden. Image credit: Unspash
This report from Christian Aid and partners provides suggestions for mobilising finance to channel through the Loss and Damage fund established at COP 27 based on principles articulated in a paper released in a paper on the Loss and Damage Finance Facility: why and how released in the lead up to COP 27 and which include:
1. International cooperation and solidarity, historical responsibility and the polluter pays principle
2. New and additional
3. Needs-based, adequate, predictable and precautionary
4. Locally driven with subsidiarity – enveloping gender responsiveness and equitable representation
5. Public and grant-based
6. Balanced and comprehensive.
The paper argues that Parties need to agree on how the finance to fill the fund will be raised during the course of 2023. This funding must be additional to funding for mitigation and adaptation. It is a matter of climate justice that polluters companies and rich taxpayers who have a much greater responsibility for climate change bear the cost of paying for efforts to address loss and damage. Beyond ensuring that commitments to provide finance are fulfilled, this will also be a symbol in beginning to address the imbalance between richer and poor countries.
Options for mobilising finance include wealth taxation and a Climate Damages Tax as well as taxes on the profits from the production of fossil fuels and international transport levies. The report argues that it is possible to mobilise finance at the scale of the needs to address loss and damage in lower income countries. The Transitional Committee must ensure that the Loss and Damage Fund will be properly funded by making recommendations for how richer countries will provide their fair share of Loss and Damage finance.