Loss and Damage: From challenge to opportunity

1. Loss and Damage: From challenge to opportunity ecbi Bonn Seminar June 9th, 2013 SaleemulHuq, Erin Roberts and Anna Hasemann International Centre for Climate Change and Development

2. Loss and Damage: From an idea . . . 1991 – Vanuatu submits a proposal on behalf of AOSIS to the Intergovernmental Negotiating Committee for an international insurance pool to be included in the Convention 1992 – Proposal not incorporated into Convention but the word “insurance” survived in Article 8 which calls on Parties to consider actions related to “funding, insurance and the transfer of technology, to meet the specific needs and concerns of developing country Parties arising from the adverse effects of climate change…”

3. ...to a workprogramme... 2007 – Bali Action Plan calls for enhanced action on adaptation including the consideration of “disaster risk reduction strategies and means to address loss and damage associated with climate change impacts in vulnerable countries”. 2008 - AOSIS proposes the ‘Multi-Window Mechanism to Address Loss and Damage from Climate Change Impacts’ in a submission to the SBI which calls for: • insurance to help vulnerable countries manage the financial risk associated with increasingly frequent and severe extreme events; • rehabilitation or compensation to address loss and damage associated with the impacts of climate change; and • risk management to support risk assessment and inform the other components of the framework. 2010 -At COP 16 a work programme is established to “consider approaches to address loss and damage associated with climate change impacts in developing countries that are particularly vulnerable to the adverse effects of climate change.”

4. …to enhanced understanding. 2011 - At SBI 34thework programme is differentiated into three thematic areas: • Assessingthe risk of loss and damage associated with the adverse impacts of climate change and current knowledge of the same • A range of approaches to addressing loss and damage at associated with the adverse effects of climate change, including impacts related to extreme weather events and slow onset events, taking into consideration experience at all levels • The role of the Convention in the implementation of approaches to address loss and damage associated with the adverse effects of climate change. 2012 – Activities under the work programmeinclude: • An expert meeting on assessing the risk of loss and damage • Regional expert meetings on approaches to address loss and damage in each of Africa, Asia and Latin America and one for the SIDS • Background paper on methodologies to assess loss and damage, literature review on approaches to address loss and damage and a technical paper on slow onset processes

5. What did we learn? A few of the gaps and needs identified in the expert meetings include: • Significant capacity and data needson assessing the risk of loss and damage • Need to understand much more about slow onset processes and how to address them • Need to enhance support for local level action • Need to mainstream loss and damage into national development plans • Need to increase regional cooperation through regional platforms and forums

6. Deconstructing the Doha decision In Paragraph 5 Parties decided that, “the role of the Convention in promoting the implementation of approaches to address loss and damage associated with the adverse effects of climate change includes, inter alia, the following: • Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change, including slow onset impacts; • Strengthening dialogue, coordination, coherence and synergies among relevant stakeholders; • Enhancing action and support, including finance, technology and capacity-building, to address loss and damage associated with the adverse effects of climate change; In Paragraph 9 Parties decided to “establish institutional arrangements, such as international mechanism, including functions and modalities elaborated in accordance with the role of the Convention as defined in paragraph 5 . . .”

7. Deconstructing the Doha Decision Paragraph 6 invites all Parties, taking into account common but differentiated responsibilities and respective capabilities and specific national and regional development priorities, objectives and circumstances, to enhance action on addressing loss and damage . . . by undertaking, inter alia, the following: • Assessing the risk of loss and damage, including slow onset impacts; • Identifying options and designing and implementing country-driven risk management strategies and approaches; • Observation of, and data collection on, the impacts of climate change, in particular slow onset impacts; • Implementing comprehensive climate risk management approaches; • Promote enabling environment to encourage investment and involve relevant stakeholders; • Involving vulnerable communities and populations, and civil society, the private sector and other relevant stakeholders, in the assessment of and response to loss and damage; • Enhancing access to, sharing and the use of data, at the regional, national and subnational levels to facilitate the assessment and management of climate-related risk.

8. Whereopportunities lie... Paragraph 7 represents an agreement between all Parties that further work is needed on, inter alia: • Enhancing understanding of: • Non-economic losses and damages; • The impacts of loss and damage on especially vulnerable groups; • Approaches to address loss and damage from extreme events and slow onset processes, including risk reduction, risk sharing, risk transfer and rehabilitation; • The impacts of climate change on patterns of migration, displacement and human mobility • Strengthening and supporting the collection and management of relevant data • Strengthening and promoting regional collaboration • Enhanced capacity-building at the national and regional levels to address loss and damage • Strengthening institutional arrangements at the national, regional and international levels to address loss and damage Parties now need to agree on how to operationalize the needs identified in paragraphs 6 and 7

9. What is the way forward in the negotiation process? • Develop an understanding of the needs of developing countries for assessing and addressing loss and damage and develop institutional arrangements thataddress those needs. • Need to better understand thresholds and limits to adaptation. • Need clarity on compensation – what does it mean? • Need to ensure that mandates of existing institutions not duplicated while addressing loss and damage in a holistic, coherent and comprehensive way under the Convention. • While acknowledging further research needs it is important to deliver a decision in Warsaw that will help developing countries address loss and damage both today and tomorrow. • Work together to develop a 2015 agreement that will reduce loss and damage through enhanced action on both mitigation and adaptation andhelp developing countries address residual losses and damages

10. Whatisthe way forwardfor nationallevelaction? • Loss and damage is happening now and countries cannot wait for guidance from the UNFCCC to address it. • While there are significant financial, capacity building and technology needs for developing comprehensive approaches to address futureloss and damage in developing countries there is a lot that has been donealready including: • Establishment of national climate change funds in Bangladesh • Development of a national strategy on food security in Ethiopia • Creation of national disaster fund in Mexico • Establishment of a poverty reduction strategy in the Philippines to help those most vulnerable to climate change impacts • Developing countries can and will continue to work within their own capacities to implement approaches to assess and address loss and damage, but those efforts will be enhanced with support.

11. Loss and damage is a global issue While developing countries will bear the brunt of climate change impacts, losses and damages from climate change are being experienced worldwide: • In late 2012, Hurricane Sandy hit the northeast coast of the US causing estimated damages of 53 billion USD. • Current floods in Germany have resulted in loss and damage estimated at 2.5 billion EUR. • In Alaska, five communities are planning to relocate due to coastal erosion, at an estimated cost of 80 million to 200 million USD for each village. • Increased heat waves in Franceare predicted to decrease maize yields by 12 percent over the next 20 years. • Increased incidence of bush fires in Australia has led to a study investigating the psychological affects of bush fires on children.

12. For moreinformation • Since February of 2012 ICCCAD has been conducting research to better understand how to assess and address loss and damage at the national level in Bangladesh. • For more information contact Erin Roberts at roberts.erin@gmail.com