Philanthropies, including CIFF and Oak Foundation, have also allocated finance for addressing loss and damage. Loss and damage should also be included in Environmental, Social and Governance (ESG) targets of multinational companies and financial service providers.Ĭompanies with philanthropic arms can follow the example of the Climate Justice Resilience Fund (CJRF) and the Climate Emergency Collaboration Group (CECG) by investing in actions to address loss and damage. It was suggested that addressing loss and damage can be integrated into businesses’ climate risk management plans and corporate social responsibility strategies. They can act now to make their supply chains and business models climate resilient, supporting producers, processors, manufacturers and traders at all levels of the value chain to cope with and recover from climate shocks. Some participants noted that private enterprises, from transnationals to small businesses, are already experiencing the negative impacts of climate change. It was suggested that private sector finance could be mobilised by making the case that, if unaddressed, loss and damage will erode productivity, market access and long-term profit rates. Finally, which actors are ‘agents of change’ in this area was considered. They discussed how far current options address the urgency and scale required for loss and damage action, and what role the innovative approaches might play in shifting the financial burden away from the most vulnerable and most impacted. In this session participants were presented with case studies of novel and innovative sources of funding, and asked to consider how far these addressed the limitations identified among the existing mechanisms considered in the ‘Mobilising Finance: lessons learned’ session. Given the current lack of public finance available to support action to address loss and damage, there is an urgent need to develop and deploy innovative sources and flows of finance to fill this funding gap in ways that are appropriate, effective and just. Innovative Finance to Address Loss and Damage
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