Challenges and countermeasures for developing countries in addressing loss and damage caused by climate change

Abstract

Loss and damage caused by extreme climate events have attracted increasing attention. The 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (hereinafter referred to as the Convention) has agreed to adopt Loss and Damage Fund agreement, which identified the source of funding and the funds to be entrusted to the World Bank. However, there is still ambiguous that how to allocate the funds could accelerate the effectiveness of meeting the needs for developing countries. Pre-disaster prevention and preparedness is one of the most effective measures to deal with loss and damage, which closely related to adaptation. Previous studies rarely analyzed quantitatively the financial needs of pre-disaster prevention and preparedness relating to adaptation to reduce loss and damage. Based on the official reports submitted by countries under the Convention, this study analyzes the annual change in the total financial support provided by developed countries to developing countries, the proportion of pre-disaster prevention and preparedness in the adaptation needs of developing countries, and the progress in raising the current annual funding target of 100 billion USD for developed countries, to reveal the financial and technical challenges facing by developing countries on addressing loss and damage. The results show that by 2030, the total adaptation financial needs of developing countries are estimated to be about 3.8 trillion USD, of which pre-disaster prevention matters account for about 9%. Therefore, by 2030, developing countries will need about 342 billion USD in pre-disaster prevention and preparedness finance to withstand loss and damage. In addition, developing countries face a lack of technical methods to quantify information about their needs. Based on the above analysis, this study puts forward countermeasures and suggestions, including strengthening the allocation amount of loss and damage fund on pre-disaster warning, prevention and control actions, and establishing track modalities on the finance provided by developed countries to developing countries based on the principles of the principle of Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC), to provide favorable guarantee for accelerating the effectiveness of international climate governance.