Financing Instruments and Sources to Address Loss and Damage from Slow-onset Processes

In addition to amplifying extreme weather events, climate change also causes or intensifies slow-onset processes such as sea-level rise, desertification, biodiversity loss or permafrost thaw. Both types of climate change impacts cause loss and damage, impede the enjoyment of human rights and can be drivers for human mobility. In contrast to extreme weather events, dealing with loss and damage caused by slow-onset processes in the context of climate change is still neglected – both at the national and international level.

The publication series "Addressing Loss and Damage from Slow-Onset Processes" responds to this challenge and aims to foster awareness of the urgency to act in this area and provide input for processes at the national and international levels. The aim is to find tangible and feasible solutions to address loss and damage from slow-onset processes.

This third part of the series analyses financing instruments and sources necessary for addressing the loss and damages from slow-onset processes. First, the paper presents and discusses options for financing instruments as well as related criteria for applicability and adequacy. The instruments include those already implemented and tested, as well as those still in the theoretical con­ceptual phase. It then gives an in-depth analysis of the potential of the existing UNFCCC financial architecture to finance loss and damage measures. Based on the anal­yses, recommendations for the national level and international level (with a focus on the UNFCCC) are formulated regarding how to find tangible and feasible solutions to address loss and damage from slow-onset processes.

An introduction to the topic and a detailed analysis of economic and non-economic damages and losses as a result of slow-onset processes can be found in part 1 of the publication series. An analysis of national and international approaches to address loss and damage from slow-onset processes with view to status quo, gaps and challenges can be found in part 2 of the publication series.

The publication series is prepared as part of the “Multi-Actor Partnership on Climate and Disaster Risk Financing in Context of the InsuResilience Global Partnership”.