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Denmark becomes first to offer ‘loss and damage’ climate funding

As the first UN member to offer direct cash for communities affected by climate change, Denmark announces new 100 million DKK (13.5 million EUR) support to climate adaptation and concrete activities to avert, minimize and address climate-induced loss and damage for the world’s poorest.
By Magnus Højberg Mernild | [email protected]
23 September 2022

The impact of climate change is a rapidly growing challenge for the poorest and most vulnerable countries. The Danish Government together with five other political parties have decided to grant 100m DKK (13.5 million EUR) extra in climate aid to target people most vulnerable to climate change and climate-induced loss and damage. The extra climate aid strengthens Denmark’s global climate efforts and the target of dedicating at least 60% of Danish climate aid to climate adaptation.

Denmark’s Minister of Development Cooperation Flemming Møller Mortensen says:

I am very pleased to announce our joint decision to increase Denmark’s support towards climate adaptation and climate-induced loss and damage. In spring I visited Bangladesh and witnessed the consequences of climate change first hand. It is not fair that the poorest communities, who have contributed the least to climate change, have to suffer the most from its impact. This new support demonstrates that we are turning words into action and cooperate with civil society, local authorities, private sector and experts to solve one of the greatest challenges of our time. I am not talking about compensation or legal responsibilities. I am talking about finding the right means to help the most vulnerable people who suffer the most from the consequences of climate change.”

Amongst other, the additional Danish climate aid covers support of 40m DKK (5.4 million EUR) to civil society organisations to enhance their work with adaptation and climate-induced loss and damage in poor and vulnerable communities with a particular focus on the Sahel-region.

Furthermore, support of 35m DKK (4.7 million EUR) to InsuResilience Global Partnership, which works to strengthening the resilience to climate and disaster risks in vulnerable countries through insurance mechanisms covering risks of loss and damage in relation to climate disasters.

Lastly, 25m DKK (3.3 million EUR) is reserved for a strategic initiative within climate-induced loss and damage to support the current and ongoing COP27-climate negotiations. The concrete activities will be specified during the coming fall.

Facts about loss and damage

Climate-induced loss and damage covers the most severe effects of climate change, which cannot be avoided through the mitigation of greenhouse gas-emissions nor alleviated locally through climate adaptation.

It encompasses loss and damage caused by sudden and urgent catastrophes, such as hurricanes, tropical storms, drought, forest fires or flooding. It also encompasses loss and damage caused by the slow on-set events, such as rising sea levels, which threatens to destroy low-lying small island states or long-term changes to rainfall patterns that wipes away the livelihoods for farmers.

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