EXPLAINER: What is loss and damage in climate change

Loss and damage refer to the negative consequences of climate change on humanity and the natural environment.

‍The 'loss' refers to things that are lost permanently to the climate crisis such as human and animal lives, species, territories, water sources, ecosystems, livelihoods, heritage sites and languages.

'Damage' is for things that have been affected by the climate crisis but can be restored, such as impacts to physical and mental health, soils, roads, schools, homes, health centres and businesses.

Climate change is the shifts in temperatures and weather patterns and affects the geographical distribution of extreme weather events such as storms, floods and heatwaves.

All of these result in loss and damage, both economic and non-economic.

Economic loss and damage may include damage to crops, homes or infrastructure.

Non-economic loss and damage may include harm to human health and mobility.

Financing must be designed in a responsive, anticipatory and locally accessible manner to build long-term resilience to support those affected by loss and damage.

According to the London School of Economics and Political Science, an insurance policy is one important tool to cover those affected by damage and loss but is not affordable or accessible to all.

How countries can handle these losses and damages has been a key issue at United Nations climate negotiations.

"The establishment of a Loss and Damage Fund was, for many, the highlight of the United Nations Climate Conference (COP 27) and the culmination of decades of pressure from climate-vulnerable developing countries. The fund aims to provide financial assistance to nations most vulnerable and impacted by the effects of climate change, "United Nations Environment Programme said.

Some climate change impacts are inevitable as they are already in the Earth’s system due to the extended period over which emitted greenhouse gases fully affect the climate system.

Loss and damage may occur where adaptation has not been optimally implemented or where adaptation limits are reached. This is because actions are expensive, not physically possible or simply not sufficient to prevent some harm to humans as well as the environment.

Ways of reducing loss and damage.

Ways of reducing loss and damage from climate change include increasing resilience before the occurrence of extreme weather.

One can strengthen flood defences and establish mechanisms to provide financial or social protection support to those who have already experienced loss and damage.

However, UNEP says there are other opportunities to reduce loss and damage after extreme weather events.

"Incorporating resilience into recovery such as rebuilding infrastructure to be more climate resilient in the future is an important way. Actions to mitigate and adapt to climate change are essential in both developing and developed countries, to avert and minimise the extent of loss and damage they experience," UNEP said.

Broader policy and governance arrangements are also said to play a significant role.

This is because communities’ vulnerability and exposure to climate change are influenced by a multitude of factors.

The factors can include land use planning, access to education and health services and disaster preparedness.

The Transitional Committee on the operationalisation of the new fund for responding to loss and damage held its third meeting from August 29 to September 1.

The meeting according to UNFCCC resulted in significant progress towards fulfilling the mandate given to the Committee at COP27 last year.

The President-designate of this year’s COP28 Sultan Ahmed Al Jaber called on participants to continue identifying funding sources to ensure funds are distributed efficiently.

“It is one thing to have a well-structured fund but will only be fully operational if it is actually funded. COP28 in Dubai at the end of the year is the place to deliver and operationalise the funding arrangements for loss and damage,” he said.