Why in News?
In the aftermath of the catastrophic landslides that recently impacted Kerala’s Wayanad district, a critical discourse has arisen regarding the eligibility of subnational entities to claim compensation through the Loss and Damage Fund (LDF) under the United Nations Framework Convention on Climate Change (UNFCCC).
Note
- The Wayanad district of Kerala experienced a devastating landslide disaster in early July 2024 due to heavy rainfall and fragile ecological conditions.
- The landslides in Chooralmala and Mundakkai villages killed at least 144 people and injured 197, after the district received over 140 mm of rain in 24 hours, saturating the soil and weakening its binding to the underlying hard rocks.
What is the Loss and Damage Fund?
Establishment and Goal: The Loss and Damage Fund (LDF) was established at the 27th UNFCCC Conference of Parties (COP27) held in 2022 in Egypt to provide financial support to regions suffering both economic and non-economic losses caused by climate change.
- In COP28, member countries reached an agreement to operationalize the Loss and Damage (L&D) fund.
- The Fund addresses losses resulting from extreme weather events and slow-onset processes, such as rising sea levels.
Governance: The LDF is governed by a Governing Board, which is responsible for:
- Determining the allocation of the Fund’s resources.
- The World Bank serves as its interim trustee.
- The Governing Board is currently developing mechanisms to facilitate access to the Fund’s resources, including Direct access, Small grants, Rapid disbursement options.
Concerns: Despite its intended purpose, there are ongoing concerns that:
- Climate funds, including the LDF, may be too slow to be immediately accessible following a disaster.
- This issue is particularly acute for local communities at the subnational level.
It is anticipated that the LDF may face similar challenges in ensuring timely access to its resources.
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