A Real Mosaic of Solutions to Respond to Loss and Damage from Climate Change | Reform of the International Financial Architecture

This publication is part of a series of briefs unpacking the pieces of a fit for purpose “mosaic of solutions” to respond to loss and damage from climate change. This series expands on our earlier work, which presented a five-year vision for Loss and Damage under the United Nations Framework Convention on Climate Change (UNFCCC) to look beyond the international climate regime at catalysing a wider mosaic of solutions.

In the flagship paper of the series, we unpack the pieces of the mosaic. In these thematic briefs, we dive deeper into existing solutions and how they can be strengthened. We also consider any reforms needed and explore emerging solutions.

This brief unpacks the relationship between loss and damage response and the reform of the international financial architecture with a focus on Special Drawing Rights (SDR). It provides a basic overview of the problems developing countries face as a result of current inequalities within the international financial architecture and the reforms needed. On SDRs, it makes the case for their use to respond to loss and damage and advance sustainable development.  The paper also unpacks the reforms needed to ensure that SDRs are allocated in the hundreds of billions yearly, are easily accessible to developing countries as grants, and flow directly to multilateral development banks and funds — including the Fund for Responding to Loss and Damage (FRLD).