Denmark paves way for ‘loss and damage’ climate aid

Denmark paves way for ‘loss and damage’ climate aid

Facebook
Twitter
LinkedIn

It may seem like a drop in the bucket, but the $13 million Denmark has earmarked in aid for climate change-related “losses and damages” sets an important precedent.

It could end up helping open a new flow of aid to the world’s most vulnerable countries.

Danish Development Cooperation Minister Flemming Moller told the UN General Assembly last month the money would go towards “climate adaptation and concrete activities to prevent, minimize and respond to climate-related loss and damage”.

It would primarily help island nations and countries in North Africa’s Sahel region, he added.

Denmark’s gesture, modest as it is, is an important contribution to the debate over the still controversial notion of ‘loss and damage’.

“Denmark is in a way a pioneer,” said Lily Salloum Lindegaard, who specializes in climate change policy at the Danish Institute for International Studies.

Only the Walloon governments of Scotland and Belgium had previously made such commitments, she added – and on a modest scale.

“But Denmark’s commitment brings further progress if we are to address the extensive losses and damage that climate change has already experienced,” Lindegaard told AFP.

“Compared to the needs on the ground, Danish involvement is quite low given the scale of the problem.”

However, she added: “Danish involvement is more important in political terms, as developed countries have long shied away from financing losses and damages.”

– recoil –

As the consequences of global warming – measured in terms of lost lives and economic damage – have accumulated, calls for loss and damage as a separate category have increased.

Developing countries see this type of funding as compensation – a form of reparation – beyond “adaptation” support to build resilience to future impacts.

While acknowledging the developing world’s need for aid, rich nations are reluctant to set a precedent that might suggest liability for any future damages.

“To date, climate finance has essentially only served to prevent the impacts of climate change and associated losses and damage through mitigation and adaptation measures,” said Lindegaard.

And not every country is ready to go further, she added.

“There have already been some setbacks from the US,” Lindegaard said.

“However, the science of loss and damage is already quite clear and is evolving rapidly, making it increasingly difficult for countries to sidestep the problem.”

– ‘We are obliged’ –

As climate change amplifies the devastation caused by extreme weather events, there is increasing pressure on developed nations to do more to help.

The world’s most vulnerable countries in the Global South are least responsible for causing the problem – the G20 group of major economies is responsible for 80 percent of greenhouse gas emissions today, and even more in the past.

Pakistan — a nation of 220 million that has experienced record monsoon rains this year linked to climate change — emits less than one percent.

Denmark’s announcement at the United Nations General Assembly sent a clear message, Danish Development Minister Flemming Moller Mortensen told AFP.

“We are committed to helping the people and communities suffering from the effects of climate change.

“These are the people who are losing their homes to floods, the farmers who are losing their crops to drought.”

– Beginning of a dialogue –

At last year’s COP26, developing countries did not get the pledges of targeted financial commitments that they had hoped for.

Rich countries merely agreed to begin a two-year dialogue on the issue, scheduled to run until 2024.

According to the OECD, Denmark spends around 2.9 billion dollars a year on development aid, which corresponds to around 0.7 percent of gross national income.

It has set a goal of spending at least 60 percent of its aid on climate change adaptation and is the first country to commit funds specifically to address its impacts.

But Denmark’s commitment is also short on details.

The funds will be shared between NGOs and a strategic initiative, details of which are yet to be announced, the State Department said.

Her announcement was nonetheless widely regarded as an important precedent.

It remains to be seen whether other countries will follow suit.

More to explorer