Climate change is increasingly evident through devastating impacts on lives and livelihoods, such as the destructive floods in Pakistan and Indonesia. The likelihood of global warming exceeding 1.5°C is over 50%, amplifying the severity of climate change effects and associated losses. Recognising this, international climate negotiations established a Loss and Damage Fund at COP27. Indonesia, an archipelago vulnerable to climate change, faces increased risks of extreme weather events and slow-onset events like sea level rise. Addressing Loss and Damage has become a crucial policy area for Indonesia, requiring mitigation and financing options. Written by IRID and Germanwatch, this background paper discusses Loss and Damage in Indonesia, explaining the concept, its history within the UNFCCC, and providing an overview of financing options.
