US Withdrawn from Loss and Damage Fund

Syllabus: GS 3/Environment 

In News

• The US has withdrawn from the board of the Loss and Damage Fund.

Loss and Damage Fund (LDF)

• It was established at the 2022 UNFCCC Conference (COP27) in Egypt to provide financial support to regions suffering both economic and non-economic losses caused by climate change. 
• These include extreme weather events and slow-onset processes, such as rising sea levels. 
• The LDF is overseen by a Governing Board that determines how the Fund’s resources are disbursed, with the World Bank serving as the interim trustee. 

Objectives 

• The purpose of the Fund is to assist developing countries that are particularly vulnerable to the adverse effects of climate change in responding to economic and non-economic loss and damage associated with the adverse effects of climate change, including extreme weather events and slow onset events.

Concerns 

• Climate funds are often too slow to be accessible immediately after a disaster, particularly for local communities at the sub-national level.
  • It is anticipated that the LDF may face similar challenges.
• Without drastic emissions reductions, more countries will suffer from climate change’s devastating effects, making additional resources for mitigation, adaptation, and loss and damage critical to achieving the Sustainable Development Goals.
• The US withdrawal undermines global climate justice and must be held accountable for its role in climate damage and reparations.

Conclusion and Way Forward 

• The effectiveness of the Loss and Damage Fund depends on addressing gaps left by existing climate finance institutions like the Green Climate Fund.
• However, for the fund to truly be effective, the root cause of climate change—emissions—must be tackled.
• India needs a clear legal and policy framework to streamline climate finance for adaptation and loss and damage, in line with locally led adaptation principles crucial for vulnerable communities.

Source:IE