Jeanette Baumann
Guest Contributor
COP29 took place from the 11th of November to the 22nd in Baku, Azerbaijan. Hailed as the “Finance COP”, for many attendees Baku had one job to do: deliver climate finance not only for mitigation and adaptation measures, but also for climate-related loss and damage (L&D). But it signally failed to deliver.
“This outcome is a travesty. It sacrifices the needs of the world’s poorest and most vulnerable to protect the narrow interests of those who created this crisis. It prioritises profits and convenience over survival and justice,” said the Group of Least Developed Countries, comprising the 45 States with the lowest incomes.
This post reports on the outcome of the Baku COP and asks, on this showing, is L&D irrevocably bound to fail? It is divided into two parts: the first addresses the outcome of COP29 and the related concerns and the second part discusses the policies and practices needed to adequately address the climate crisis going forward.
“This outcome is a travesty. It sacrifices the needs of the world’s poorest and most vulnerable to protect the narrow interests of those who created this crisis.”
SIDS, LDCs, and who else was left behind?
The 39 Small Island Developing States (SIDS) are dealing with compounding risks, as they tend to be at the frontlines of disasters with the annual cost of damages from natural disasters ranging between 1% and 8% of their GDP. SIDS are reported to face distinctive challenges due to their geographical and ecological characteristics. These nations are home to 40% of the world’s coral reefs, 75% of which are under significant threat from climate change. The degradation of coral reefs poses serious ecological and economic risks, given their role in supporting marine biodiversity, protecting coastlines, and sustaining local economies.
Furthermore, the blue economy, encompassing the industries and activities related to the oceans, seas, and coasts, is said to contribute approximately USD 2.3 trillion annually to the global GDP. This economic sector is crucial not only to SIDS but also to many other nations. Over three billion people worldwide depend on the ocean for their livelihoods and food security, underscoring the need for the sustainable management of marine resources in the face of climate and environmental challenges.
[LDCs] contribute minimally to global greenhouse gas emissions yet bear the brunt of climate-induced disasters.
The Least Developed Countries (LDCs) face severe and disproportionate impacts from climate change due to their limited financial, infrastructural, and institutional capacity to adapt. These nations contribute minimally to global greenhouse gas emissions yet bear the brunt of climate-induced disasters such as floods, droughts, and cyclones.
For instance, over the past 50 years, 69% of global climate-related deaths occurred in the LDCs, which are also home to 17 of the 20 most climate-vulnerable nations. The economic burden is immense, as climate-related losses exacerbate the existing structural challenges like debt distress and a reliance on volatile commodity exports. Many LDCs now spend more on debt repayments than on education and health combined, further hindering their capacity to invest in resilience and development initiatives. These nations also receive an inadequate share of the global climate finance, despite their acute vulnerabilities, leaving them underfunded and under-resourced.
The SIDS and LDCs were betrayed at COP29; they were left to fend for themselves, in the face of a crisis they did not cause. While Loss and Damage has always been a question of justice, the Loss and Damage Fund has become a symbol of the inequities of the climate crisis. In what may be the biggest snub in COP history since Copenhagen, justice hasn’t been served at COP29 as the very States that are least able to cope with climate change’s effects are those who will bear the brunt of its devastating impacts.
What is “Loss and Damage”?
Loss and damage refer to the adverse impacts of climate change that persist even after mitigation and adaptation measures are implemented. On a personal level, this often manifests in deeply tangible and devastating ways, such as the loss of family members to climate-induced disasters, or the destruction of homes and ancestral lands due to rising sea levels, storms, or other extreme weather events. These losses are immediate and visible, profoundly affecting lives and livelihoods.
However, there are also less obvious and more insidious forms of loss. These can include the erosion of cultural heritage when sacred sites or traditional ways of life are disrupted by climate impacts. Biodiversity loss can deprive communities of ecosystems that have long supported their food security and livelihoods. The emotional and psychological tolls, such as grief, anxiety, and a sense of disconnection from one’s roots or environment, are the other aspects of loss often overlooked in broader discussions.
Furthermore, there is an economic dimension: communities, particularly in developing nations, face long-term setbacks as agricultural productivity declines, fisheries are depleted, and infrastructure is repeatedly damaged, hampering recovery and development. The less visible impacts of climate change, therefore, underscore the multidimensional nature of loss and damage, necessitating comprehensive approaches to address these effects in both policy and practice.
COP29 was supposed to be the “Finance COP”, but as far as funding for loss and damage goes, it has failed to deliver.
During COP29 and subsequently, approximately USD 730 million (at current exchange rates) were pledged to the Loss and Damage fund by States. While that might sound like an impressive sum, in reality it’s far from enough. In fact, it’s little more than a trickle compared to what is needed to redress the harms to the most vulnerable communities. To put things into perspective, the cost of natural disasters in the Philippines (the host of the board of the Loss and Damage fund) amounted to about PHP 23 billion in 2023 (around USD 390 million).
COP29 was supposed to be the “Finance COP”, but as far as funding for loss and damage goes, it has failed to deliver.
According to estimates from the Potsdam Institute for Climate Impact Research (PIK), by 2050, it is likely that around USD 38 trillion worth of damage will be caused by climate change every year. Even if carbon emissions are cut rapidly, past carbon emissions have already ‘locked’ us into a future of extreme weather, changes in rainfall, wildfires, and other climate impacts, which will hit the poorest hardest.
So, the question becomes who should pay for the loss and damage?
End of Part 1.
