The decision on matters relating to finance of Loss and Damage due to past dangerous interference with climate system acknowledges that existing funding arrangements fall short of responding to current and future impacts of climate change and are not sufficient to address the existing funding gaps related to providing action and support in responding to loss and damage associated with the adverse effects of climate change.
It adopted “Matters relating to finance: matters relating to funding arrangements responding to loss and damage associated with the adverse effects of climate change, including a focus on addressing loss and damage”.
It acknowledged the urgent and immediate need for new, additional, predictable and adequate financial resources to assist developing countries that are particularly vulnerable to the adverse effects of climate change in responding to economic and non-economic loss and damage associated with the adverse effects of climate change, including extreme weather events and slow onset events, especially in the context of ongoing and ex post (including rehabilitation, recovery and reconstruction) action.
It decided to establish new funding arrangements for assisting developing countries that are particularly vulnerable to the adverse effects of climate change, in responding to loss and damage, including with a focus on addressing loss and damage by providing and assisting in mobilizing new and additional resources, and that these new arrangements complement and include sources, funds, processes and initiatives under and outside the Convention and the Paris Agreement.
It also decided, in the context of establishing the new funding arrangements to establish a fund for responding to loss and damage whose mandate includes a focus on addressing loss and damage.
It establishes a transitional committee on the operationalization of the new funding arrangements for responding to loss and damage and the fund established, in accordance with the terms of reference contained in the annex, to make recommendations based on, inter alia, elements for operationalizatio for consideration and adoption by the Conference of the Parties at its twenty-eighth (COP-28) session (November—December 2023) and the Conference of the Parties serving as the meeting of the Parties to the Paris Agreement at its fifth session (November-December 2023) with a view to operationalizing the funding arrangements.
It agrees that the recommendations to operationalize the funding arrangements and the fund shall consider, inter alia: (a) Establishing institutional arrangements, modalities, structure, governance and terms of reference for the fund; (b) Defining the elements of the new funding arrangements; (c) Identifying and expanding sources of funding;(d)— Ensuring coordination and complementarity with existing funding arrangements.
It decides that the Transitional Committee will be informed by the following, inter alia: (a) The current landscape of institutions, including global, regional and national,that are funding activities related to addressing loss and damage, and ways in which coherence, coordination and synergies among them can be enhanced;(b)‘The gaps within that current landscape, including the types of gap, such as relating to speed, ability, adequacy and access to finance, noting that these may vary depending on the challenge, such as climate-related emergencies, sea level rise,displacement, relocation, migration, insufficient climate information and data, or the need for climate-resilient reconstruction and recovery;(c) The priority gaps for which solutions should be explored; d) The most effective ways in which to address the gaps, especially for the most vulnerable populations and the ecosystems on which they depend; (e) Potential sources of funding, recognizing the need for support from a wide variety of sources, including innovative source.
It also decide to undertake the following activities for informing the recommendations: (a) Request the secretariat to conduct two workshops in 2023, with the participation of a diversity of institutions, relevant to addressing loss and damage associated with climate change impacts; (b) Request the secretariat to prepare a synthesis report on existing funding arrangements and innovative sources relevant to addressing loss and damage associated with the adverse effects of climate change; (c) Invite Parties and relevant organizations to submit via the submission portal’ by 15 February 2023 views on topics for and the structure of the Glasgow Dialogue and the workshops; (d) Invite United Nations agencies, intergovernmental organizations, and bilateral, multilateral and international financial institutions to submit inputs on how they might enhance access to and/or the speed, scope and scale of availability of finance for activities relevant to addressing loss and damage, including potential limitations and barriers and options for addressing them;support from existing funding arrangements relevant for, inter alia, responding to economic and non-economic losses, slow onset events and extreme weather events, and that they will inform the work of the Transitional Committee.
It invites the United Nations Secretary-General to convene the principals of international financial institutions and other relevant entities with a view to identifying the most effective ways to provide funding to respond to needs related to addressing loss and damage associated with the adverse effects of climate change;
It invites international financial institutions to consider, at the 2023 Spring Meetings of the World Bank Group and the International Monetary Fund, the potential for such institutions to contribute to funding arrangements, including new and innovative approaches, responding to loss and damage associated with the adverse effects of climate change.
It reiterates decision 1/CMA.3, paragraph 64, in which developed country Parties, the operating entities of the Financial Mechanism, United Nations entities and intergovernmental organizations and other bilateral and multilateral institutions, including non-governmental organizations and private sources, are urged to provide enhanced and additional support for activities addressing loss and damage associated with the adverse effects of climate change.
It request the President of the Conference of the Parties at its twenty-seventh session,in collaboration with the incoming President of the Conference of the Parties at its twenty-eighth (COP-28) session, to convene ministerial consultations prior to the twenty-eighth session of the Conference of the Parties and the fifth s n of the Conference of the Parties serving as the meeting of the Parties to the Paris Agreement to advance consideration and understanding of a possible outcome on this matter at that session.