Q. Consider the following statements with reference to the “Loss & Damage”:
1.The concept of “loss and damage” refers to financial penalties for non-compliance with emission reduction targets.
2.Taxation on industries contributing to climate change is one of the ways of generating Loss & Damage Fund.
3.Compensating for losses after the occurrence of climate-related events is one of the roles played by Loss & Damage Fund in encouraging climate resilience and risk reduction.
Which of the statements given above is/are correct?
Explanation –
Statements 1 and 2 are incorrect. The concept of “loss and damage” refers to the unavoidable negative effects of climate change, even if mitigation and adaptation efforts are successful. It includes both non-economic losses, such as loss of life, culture, and biodiversity, as well as economic losses, such as loss of property, infrastructure, and livelihoods. Financial penalties for non-compliance with emission reduction targets are a separate concept, often referred to as “climate finance” or “carbon pricing.”
While taxation on industries contributing to climate change could be a way to generate revenue, it is not directly linked to the Loss and Damage Fund.
Statement 3 is correct. Compensating for losses after the occurrence of climate-related events is one of the important roles played by the Loss and Damage Fund. This helps to provide support to vulnerable communities that have been affected by climate change and to rebuild their livelihoods. Additionally, the fund also supports measures to reduce vulnerability to future climate events.
Source: Forum IAS
