Can Kerala access funds from the Loss and Damage Fund?
(Source – The Hindu, International Edition – Page No. – 10)
| Topic: GS3 – Disaster and disaster management |
| Context |
| ● Recent landslides in Kerala’s Wayanad district have highlighted the urgent need for effective climate finance.
● The UNFCCC’s Loss and Damage Fund, established in 2022, aims to support regions impacted by climate change. ● However, challenges like bureaucratic delays and assessment gaps complicate access, underscoring India’s need for better funding mechanisms |
India’s Role and Challenges
- Damage from Disasters: India has experienced over $56 billion in damages from weather-related disasters between 2019 and 2023.
- Focus on Mitigation: India’s National Climate Action Policy and budgets have prioritised mitigation over adaptation, resulting in less engagement in Loss and Damage dialogues.
- Need for Framework: There is an urgent need for a clear legal and policy framework in India to manage climate finance, especially for adaptation and loss and damage, and to support locally led adaptation efforts.
- Expectations: The introduction of a climate finance taxonomy in the Union Budget 2024 raises hopes for increased international climate finance but lacks clear guidelines for accessing loss and damage funds.
| What is the Loss and Damage Fund (LDF)? |
| ● Establishment: The LDF was established at the 2022 UNFCCC Conference (COP27) in Egypt.
● Purpose: It aims to provide financial support for regions suffering both economic and non-economic losses caused by climate change, including extreme weather events and slow-onset processes like rising sea levels. ● Oversight and Management:
● Challenges: Climate funds, including the LDF, are often criticized for being slow to become accessible immediately after a disaster, which can be particularly problematic for local communities at the sub-national level. |
Need for State-Level Support:
- States like Kerala, which face acute climate impacts, bear substantial disaster recovery costs.
- The Rebuild Kerala Development Programme is an example of state-led recovery funded through international loans, highlighting the need for dedicated climate finance.
Challenges in Accessing the Fund:
- Bureaucratic Delays: Climate funds, including the Loss and Damage Fund (LDF), are often slow to disburse, particularly after disasters, affecting immediate relief efforts.
- Lack of Standardised Assessments: Absence of a comprehensive method for evaluating disaster-related damages, especially from slow-onset events, can hinder effective fund allocation.
- Centralised Systems: Current mechanisms for climate finance are largely centralised, potentially limiting the effectiveness of fund distribution at the local level.
Way Forward:
- Develop Local Frameworks: India needs clear legal and policy frameworks to streamline climate finance, focusing on locally led adaptation and clearer guidelines for accessing loss and damage funds.
- Advocate for Decentralization: In international forums, India should push for more decentralised disbursement methods to ensure funds reach affected communities more efficiently.
- Improve Assessment Processes: Establish standardised processes for assessing and quantifying disaster-related damages to better qualify for and utilise LDF resources.
| PYQ: Describe the major outcomes of the 26th session of the Conference of the ParSes (COP) to the United NaSons Framework Convention on Climate Change (UNFCCC). What are the commitments made by India in this conference? (250 words/15m) (UPSC CSE (M) GS-3 2021) |
| Practice Question: Discuss the role of the Loss and Damage Fund (LDF) established under the UNFCCC in addressing climate-induced losses. Evaluate the challenges faced by India, particularly in relation to accessing and managing climate finance for adaptation and loss and damage. (250 Words /15 marks) |
