COP27 Side Event - Localised Financing for Climate Change Adaptation: Reducing Loss & Damage and Inequity Cycles

Time

11:30-13:00 (Sharm El-Sheikh)

Background

A just climate transition requires inclusive engagement of local actors, ensuring reduction of climate induced loss and damage and risks, and access to finance by local actors. Sustainable and effective responses to the negative spiral of climate change, hazards, vulnerabilities, and risks, requires localized climate actions. Local actors, practitioners and communities possess knowledge of both the risks of increasingly hitting territories and solutions to better cope with them. Enhancing capacities of these communities to respond to climate hazards minimizes their risks and vulnerability, and thereby contributes to long- and short-term reduction in climate change induced loss and damage.  The debate around localizing climate finance has been growing recently. Studies suggest that only 10% of climate finance prioritize local activities (IIED, 2017), although it is at local level that climate change causes most loss and damage and even though global climate finance is intended to respond to the additional socio, economic and environmental costs generated by the climate crisis. Increasing direction of investments to local actors is a paramount that faces as many benefits as challenges, as local actors and climate finance institutions often differ in terms of institutional and technical requirements and capacities, leading to difficulties at several stages from preparing a project proposal to implementation and reporting. 

COP26 in Glasgow was a moment where the need for additional finance for loss and damage gained significant momentum. This is consistent with, and could build upon, existent models within the climate and disaster risk reduction spaces. Member States would benefit from ensuring whole-of-society inclusion - to best meet the growing needs of both climate change and disaster risk reduction. Loss and damage are, first and foremost, a matter of justice. It ensures those who have benefited most from the current international order - those most responsible for climate change - help those who are empirically most vulnerable rebuild when disaster strikes and to avert hazardous climate events. 

Objectives

1. Share knowledge on gaps, challenges, and solutions for localized financing for climate change adaptation and loss and damage.  
2. Facilitate a discussion among local communities, member states and researchers, about challenges and good practices for localized financing for climate change adaptation.