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Source: The post on Access to the Loss and Damage Fund (LDF)is based on the article “Can Kerala access funds from the Loss and Damage Fund?” published in “The Hindu” on 6th September 2024.
Why in the News?
The devastating landslides that struck Kerala’s Wayanad district in August 2023 have sparked a discussion on whether subnational entities like Kerala can access compensation from the United Nations Framework Convention on Climate Change (UNFCCC)’s Loss and Damage Fund (LDF).
India’s Role in Climate Finance
1. India faced over $56 billion in weather-related damages from 2019 to 2023 but has focused on mitigation over adaptation, limiting its involvement in Loss and Damage dialogues at COP.
2. A clear legal and policy framework is needed to streamline climate finance for adaptation and loss and damage, helping vulnerable communities access funds efficiently.
3. The introduction of a climate finance taxonomy raises hopes for more international funds, but specific guidelines for accessing loss and damage funds are still lacking.
State-Level Interventions and Challenges
1. Kerala and other state governments often bear the financial burden of disaster recovery due to acute loss and damage impacts.
2. After the 2018 floods, Kerala’s Rebuild Kerala Development Programme is funded by loans from the World Bank and KfW, highlights the importance of international climate finance for recovery.
3. A key barrier to accessing LDF funds is the lack of standardized methods for assessing disaster damages, especially from slow-onset events, leading to unrecognized needs.
About Loss and Damage Fund
| Specifications | Details |
| What is it | It is a fund created to provide financial assistance to nations most vulnerable and impacted by the effects of climate change. |
| Hosted by | The World Bank will be the interim host of the fund for a period of four years. |
| Funding | All countries can contribute to the fund voluntarily. Countries have already committed at least $450 million for the fund. |
| Eligibility to get funding | 1)All developing countries are eligible to apply for the fund. 2)A certain percentage of the fund has been set apart for Least Developed Countries and Small island developing states. |
| Criticism | There is no clear plan on how the money will be added to the fund regularly.This raises serious questions over the funds long term sustainability. |
Read more: Loss and Damage Fund
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