Compensate Climate Losses

As the two-week-long 27th Conference of Parties to Climate Change (COP27) heads for its conclusion in Sharm el-Sheikh of Egypt on Friday, the Small-Island Developing States (SIDs) and Least Developed Countries (LDCs) have ramped up their call for compensating for the unavoidable losses and damages from the impacts of climate change. The vulnerable countries including Nepal, have demanded the establishment of climate fund to address the loss and damage (L&D) of lives and property, which can’t be averted through adaptation and risk reduction strategies alone. Nepal that hosts scores of snow-capped mountains, including the world’s tallest peak Sagarmatha (Mt. Everest) and glacial lakes, is at higher risk of climate change that has been triggered by rising temperature globally. Climate-induced loss and damage are not only real for Nepal but they are multiplying at an alarming rate year after year.

At the COP27 gathering, a Nepali delegate, presenting Nepal's case at a session on Climate Change Impact on Mountains, stated that the melting cryosphere has affected the local communities and ecosystems. The participants discussed the need of developing adaptation and mitigation practices by detecting subtle environmental changes and impacts on water   resources by using high technology instrumentation methods. A research study shared in the event also applies to Nepal. The issue of L&D was formally recognised at the COP19 held in Poland, which created the Warsaw International Mechanism (WIM) for loss and damage to provide finance and compensation to the vulnerable nations. At COP25 in Madrid, the voices were louder to set up loss and damage fund for the purpose while the COP27 has formally incorporated it into agenda. A study has estimated the economic cost of climate-induced loss and damage at US$ 400 billion a year by 2030. It will be between US$ 1 to 1.8 trillion in developing countries by 2050.

The delegates at the ongoing UN climate meet have been discussing various agendas related to climate finance in the informal sessions. They include financial arrangements for loss and damage, New Collective Quantified Goal (NCQG), a standing finance committee, guidance to the Global Environmental Facility (GEF) and Long-Term Finance. However, the conference has not given a clear shape to these mechanisms. The wealthy nations, considered to be the major polluters of the globe's atmosphere, should be ready to address the issues of loss and damage, thereby saving millions of people living in mountainous and island nations. This will set the stage for the nations to achieve the goal of limiting the global temperature rise to 1.5 degree Celsius. Nepali officials attending the COP27 meeting have stated that there is slow progress in ensuring the climate justice. It is yet to settle the funding adaptations related to National Adaptation Plans and the agenda on sustainable and predictable funding and the mitigation work programme. 

Meanwhile, Nepal government has expressed commitment to transforming the sectors to demonstrate how innovation in major carbon-intensive sector can curb greenhouse gas emissions while harnessing opportunities for mitigation and adaptation co-benefits, according to the news report published in this daily on Wednesday. However, Nepal needs the cooperation of international community to attain the National Appropriate Mitigation Action that is based on Nationally Determined Contributions (NDC), enabling the nation to achieve carbon neutrality by 2045. Nepal stands to benefit from the market mechanism in terms of obtaining global carbon neutrality. It has formulated national climate action plan as per the NDC and National Adaptation Plans (NAP) to meet this goal.