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A house damaged due to coastal erosion caused by rising sea levels in Tuvalu. Credit Hettie Sem/Pacific Community
– Advancing development of the new Climate Loss and Damage Fund was a key call by Pacific Island nations at the COP29 United Nations Climate Change Conference being held in Azerbaijan in November. For Pacific Island Countries and Territories, the fund represents a critical step towards addressing what they consider a gross climate injustice: despite contributing less than 0.03 percent of global greenhouse gas (GHG) emissions, they bear the brunt of climate change’s devastating impacts.
The concept of climate finance as a “polluter pays” issue is grounded in the principle that those who have historically contributed the most to greenhouse gas emissions should be financing the developing world’s ability to deal with its impacts and scale climate action.
Fifteen years after the Paris Agreement’s promises, the Pacific region has only accessed 0.22 percent of global climate funds, severely impeding the region’s ability to adapt to escalating climate impacts.
“Access to funding is very limited to date,” Coral Pasisi, Pacific Community’s Director of Climate Change and Environmental Sustainability, Niue, told IPS. “There are structural impediments to why international funds are not financing adaptation and mitigation in the Pacific at the rate they need. Most global funds do not take account of the special circumstances of SIDS—including their extreme exposure to disasters, remoteness, lack of capacity and small population sizes. And there is a direct correlation between the lack of access to climate finance for resilience and adaptation measures and the mounting costs of loss and damage for the Pacific region.”
Access to climate-related international finance has been and remains a significant challenge for Small Island Developing States (SIDS). The global multilateral climate financing architecture is administratively complex, requiring considerable capacity to access and taking too long—on average three years for project development to approval. Through pooling resources and frontloading, the regional organization, the Pacific Community, is a vital partner in raising the chances of funding success for some of the world’s smallest nations.
According to the United Nations Framework Convention on Climate Change (UNFCCC), loss and damage are ‘the negative impacts of climate change that occur after all reasonable adaptation and mitigation measures have been implemented’. These impacts can be economic, such as damage to infrastructure, destruction of homes, reduced agricultural yields, and other financial losses. They can also be non-economic, such as loss of culturally important areas, traditional knowledge, loss of life and grief. It is important to note that most often, loss and damage have both non-economic and economic implications. When communities and nations face overwhelming challenges and lack sufficient financial resources to address these impacts, they become increasingly vulnerable. This exacerbates loss and damage, undermining recovery and resilience efforts.
With the global temperature rise on course to exceed the 1.5-degree Celsius safety threshold in the 2030s, warns the IPCC, losses inflicted by climate extremes are set to escalate and will be beyond the economic resources of Pacific Island states. Even though there are six Pacific Island nations among the 20 most disaster-prone countries in the world. In 2019, disasters were costing the region USD 1.07 billion per year, with 49 percent of losses due to cyclones and 20 percent due to droughts, reports the UN Economic and Social Commission for Asia and the Pacific (ESCAP). And this century, annual average losses could amount to 20 percent of GDP in Vanuatu and 18.2 percent in Tonga.
Recent disasters include the violent eruption of the Hunga Tonga Hunga Ha’apai volcano in the Polynesian nation of Tonga in 2022. It affected 85 percent of the population of about 107,000 people, destroyed infrastructure, agriculture and tourism, and left a damage bill of USD 125 million.
Extreme rainfall and floods caused months of agricultural losses in Siai Village, Oro Province, Papua New Guinea, in 2012. Credit: Catherine Wilson/IPS
The following year, Vanuatu was hit by two cyclones, Judy and Kevin, plus a 6.5-magnitude earthquake in March. Again, more than 80 percent of people were affected, crops were lost, tourists fled and the cost of damages amounted to 40 percent of the country’s Gross Domestic |Product (GDP). Meanwhile, in Fiji, villagers on Vanua Levu Island have witnessed higher sea tides accelerate coastal erosion in the past 18 years and communities have been forced to relocate inland due to excessive flooding.
Climate losses in the region are related to the vulnerability of populations. Ninety percent of Pacific Islanders live within 5 kilometres of weather-exposed coastlines and plants in the region that generate 84 percent of total power are exposed to cyclones, reports ESCAP.
“Critical infrastructure, such as schools, roads and hospitals, is one of the areas that has the costliest impacts in terms of economic loss and damage and non-economic implications. This is especially the case where only one main hospital exists, for example; the effects of losing that facility extend well beyond the repair and replacement costs,” said Pasisi.
Non-economic losses are more difficult to quantify. These “are debilitating and often irreversible, including loss of land, cultural sites, burial grounds, traditional knowledge, village displacement, psychological trauma from recurrent disasters, failing human health, coral reef degradation and more,” reports the Vanuatu Government.
Despite their funding needs, Pacific island states face major bureaucratic handicaps in putting together complex international climate funding applications. These include lack of technical expertise, dearth of data and sheer capacity constraints within governments.
Mapping Loss and Damage challenges
In March 2023, the Pacific Island nation of Vanuatu was hit by two cyclones, Judy and Kevin, that affected 80 percent of the population and left a loss and damage bill of USD 433 million. Credit: Catherine Wilson/IPS
The new global Loss and Damage Fund was first agreed by world leaders at the COP27 Climate Change Conference in 2022. Its objective is to procure major contributions from industrialized, large carbon-emitting nations and aid vulnerable and developing countries in times of climate-driven crises. It will play a vital role given that a recent study claims that, from 2000-2019, climate extremes cost the world USD 16 million per hour.
Island nations view this initiative as a long-overdue step toward addressing climate injustice. Solomon Islands welcomes the spirit of cooperation and commitment to operationalize the Loss and Damage Fund.
“While we welcome the pledges being made in particular from developed country parties, we need to ensure that these pledges are being delivered,” Dr Melchior Mataki, Deputy Head of the Solomon Islands Delegation to COP28, told media in December 2023.
Progress in operationalizing the fund has been slow, even as the climate crisis accelerates. “The biggest challenge is the time it takes to access funding. Time is not on our side,” said Michelle DeFreese, SPC Loss and Damage Project Coordinator. “Countries have urged for the development of the Fund for decades, but the impact of climate-related loss and damage is already taking a tremendous toll on countries in the Pacific.” She explained that “responding to and preparing for sea level rise is one of the greatest funding needs in the region, particularly for low-lying atoll nations, including Kiribati, the Republic of the Marshall Islands and Tuvalu.”
To address this, the Pacific Community has collaborated with the Tuvalu Government to develop advanced physical and computer models demonstrating the impact of a 25–50-centimeter sea level rise on the atoll nation by the end of the century. The information is vital to making the case for the funding needed. From 1993 to 2023, the mean sea level rise in the Pacific was 15 centimetres, far higher than the global mean rise of 9.4 centimetres, reports the UN. And, if the global temperature rises to 1.5–3.0 degrees Celsius, the Pacific Islands could confront a rise of 50–68 centimetres.
Yet, while SIDS are encouraged by the global commitment to the new Loss and Damage Fund, with the secretariat hosted by the World Bank, the details of how it will operate, the criteria for applications and the amount of funds it will offer are still undetermined. Funding promises also fall far short of what is required. At COP28 in December last year, sizeable contributions were committed by nations including Germany, France, Italy and the United Arab Emirates, but the total of USD 700 million stands in contrast to the projected USD 100 billion per annum needed for accelerating climate losses this century.
“The Pacific has championed Loss and Damage since 1991 and will continue to do so. While all countries face climate change impacts, the Pacific and other SIDS have done the least to cause climate change and face disproportionate impacts,” Ronneberg said. “If the world doesn’t reduce emissions to be compatible with the 1.5 degree target, we will face existential threats from climate change loss and damage.”
Recognizing the urgency, the Pacific Community has intensified efforts to help nations develop comprehensive loss and damage strategies. With support from the Danish Ministry of Foreign Affairs, the organization has launched a project to help Pacific nations develop loss and damage plans and strategies. Denmark has pledged EUR 5 million to support vital research and data collection needed for funding applications.
“The project that the Pacific Community started this year with funding from the Danish Ministry of Foreign Affairs aims to support countries in the development of loss and damage national plans and strategies in parallel with the operationalization of the Fund for responding to loss and damage,” DeFreese explained.
The need for swift and substantial global action has never been greater, as the Pacific continues to face the mounting toll of climate impacts. Without accelerated efforts to operationalize the fund and deliver on pledges, vulnerable nations risk being left unprepared for the challenges ahead.
IPS UN Bureau Report
