Loss and Damage

Countries and communities worldwide are suffering escalating adverse impacts of climate change – from record-breaking storms, floods, droughts and heatwaves to ocean acidification and rising sea levels. Loss and damage from these impacts are also on the rise, from loss of lives and livelihoods, to degradation of agricultural land, displacement, and loss of biodiversity and cultural heritage.

It is becoming increasingly evident that while mitigation, adaptation and resilience-building can prevent or reduce some loss and damage, there are limits.

Loss and damage typically refers to the negative, unavoidable effects of climate change – in economic and non-economic terms – that occur despite, or in the absence of mitigation and adaptation efforts.

For example, infrastructure that has repeatedly been damaged due to floods, loss of homes and businesses from coastal erosion, loss of sacred sites due to sea-level rise, or trauma from experiencing a tropical cyclone or years-long drought.

At COP27 in 2022, Parties reached a historic agreement to establish new funding arrangements, including a new fund for climate-related loss and damage for particularly vulnerable countries, now known as the Fund for Responding to Loss and Damage. At COP28 in 2023, Parties agreed to the initial operationalization of the funding arrangements for the Fund, which is now being quickly set up to meet growing needs.

The hard-won deal for a new Fund, which has been a key issue for Small Island Developing States and other vulnerable countries and communities for decades, was a turning point in acknowledging the importance of climate justice. This includes addressing the vast inequities of the climate crisis, with the aim of providing much-needed finance for poorer countries and communities facing ongoing loss and damage.

Under the Climate Promise, UNDP is supporting countries to avert, minimize and address loss and damage by using national climate pledges to identify, track and finance actions that will help prevent or respond to loss and damage in a holistic and inclusive way. Nearly 30 countries supported by UNDP to enhance their Nationally Determined Contributions (NDCs) explicitly emphasized its importance. Small island nations such as Antigua and Barbuda and Vanuatu are leading the way with dedicated sections on the issue.

UNDP has also been requested by countries to serve as part of the interim Secretariat of the new Fund for Responding to Loss and Damage to support the Board and provide valuable expertise from relevant portfolios, including climate and disaster recovery.