Poor countries want compensation for the impacts of climate change. COP27, in November, may force the issue
recently pledged just over $13m to developing countries that have suffered damage from climate change. The issue of such payments, known as “loss and damage”, is likely to be prominent atclimate talks in November. Egypt, which is hosting the conference, has said it will prioritise compensation for developing countries. What is loss and damage and why is it so contentious?
Climate change causes costly damage, including from climate-related natural disasters, such as tropical cyclones, and more gradual changes, such as desertification and rising sea levels. Currently, because climate change is caused by greenhouse gases already in the atmosphere, rich industrialised countries are responsible for most of the emissions causing these phenomena. Poor countries often feel the effects first.
Unsurprisingly, developed countries have pushed back against this reasoning since it emerged in the early 1990s, when the text of theFramework Convention on Climate Change was being drawn up. A group of island countries had proposed that an international insurance fund be created to compensate low-lying countries for the damage caused by rising sea-levels. The suggestion was not included in the final text, but the idea has persisted.
In 2015, at the talks that culminated in the adoption of the Paris agreement, developing countries again sought a strong clause on loss and damage financing. But they ended up with only a fudgy reference to the issue. Article 8 of the Paris agreement recognises “the importance of averting, minimising and addressing loss and damage”. Precisely how to do that was left for future discussions.
That seems extremely unlikely to happen. There is simply no enthusiasm for the issue among the countries expected to pay out. Some developing countries are tentatively seeking redress through international law. On September 22nd theHuman Rights Committee ordered the Australian government to pay compensation to indigenous people living on the islands of the Torres Strait, which are being eroded by rising seas.
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