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General Studies 3 >> Economy

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LOSS AND DAMAGE FUND
LOSS AND DAMAGE FUND
 

1. Context

Amidst the escalating climate crisis, two terms have emerged at the forefront of global discussions: adaptation and loss and damage (L&D). While adaptation focuses on proactive measures to prepare for and cope with climate-related challenges, L&D addresses the irreversible consequences that lie beyond the realm of adaptation.

2. The Genesis of the L&D Fund

  • The call for affluent nations to acknowledge their historic pollution is over 30 years old. Historic pollution has led to a global average surface temperature increase of more than 1 degree Celsius, causing significant damage worldwide, particularly in the poorest nations.
  • At the 19th Conference of the Parties (COP 19) to the United Nations Framework Convention on Climate Change (UNFCCC) in 2013, the L&D fund was established to provide financial and technical assistance to economically developing nations experiencing L&D due to climate change.

3. Challenges and Impasses at COP Meetings

  • At COP 25, the Santiago Network for L&D was created, but countries didn't commit any funds.
  • COP 26 established the Glasgow Dialogue on Finance for L&D to continue discussions over the next three years on the fund.
  • At COP 27 in November 2022, the L&D fund and a Transitional Committee (TC) were established, tasked with figuring out how the new funding mechanisms would operate.
  • However, four TC meetings concluded with no clear recommendations, highlighting a significant problem.

4. Impasse at Meetings 4 and 5

  • TC4, which concluded on October 20, 2023, witnessed deep divisions on hosting the fund at the World Bank, the common but differentiated responsibilities (CBDR) principle, climate reparations, and the eligibility of developing nations for the funds.
  • An impromptu TC5 meeting in Abu Dhabi resulted in a set of recommendations forwarded to COP 28.
  • Developing nations conceded to the fund being hosted by the World Bank for an interim period of four years, but developed nations, particularly the U.S., remained non-committal about being primary donors to the fund.

5. From Multilateralism to Volunteerism

  • The outcome of TC5 underscores a profound lack of trust between affluent and emerging economies regarding their historical responsibilities.
  • The unwillingness of wealthy nations to fulfil intended commitments undermines faith in global climate negotiations, hampering the cooperative spirit necessary to address climate change.
  • This shift from multilateralism to volunteerism threatens climate justice and exacerbates the suffering of vulnerable communities in developing nations.

6. Wide-Reaching Implications of L&D Fund Challenges

The watering down of the L&D fund has wide-reaching implications, including:

  • Threats to climate justice
  • Increased humanitarian crises
  • Economic consequences
  • Environmental degradation
  • Security implications

7. Conclusion

As we strive to mitigate the worst impacts of climate change, we must remember that adaptation and L&D are not mutually exclusive concepts. They exist on a continuum of climate resilience, and both have a place in our collective efforts to combat climate change. To achieve climate justice, rich countries must meet their obligations to reduce emissions and deliver finance in line with what is fair, upholding the principles of equity, justice, and solidarity in the face of a changing climate. Failure to do so may derail global climate action, putting more pressure on the already beleaguered COP 28 talks.

 

For Prelims: loss and damage, Conference of the Parties 19, United Nations Framework Convention on Climate Change, common but differentiated responsibilities, World Bank, COP 28, Transitional Committee, 
For Mains:
1. Discuss the concept of 'Loss and Damage' (L&D) in the context of the climate crisis. How does it differ from adaptation, and why is it a critical aspect of climate change mitigation?  (250 Words)

 

Previous Year Questions

1. Which one of the following is associated with the issue of control and phasing out of the use of ozone-depleting substance? (UPSC 2015)
A.Bretton woods conference
B. Montreal Protocol
C. Kyoto Protocol
D. Nagoya Protocol
Answer: B
 

2. Which of the following statements is/are correct about the deposits of ‘methane hydrate’? (2019)

1. Global warming might trigger the release of methane gas from these deposits.
2. Large deposits of ‘methane hydrate’ are found in Arctic Tundra and under the sea floor.
3. Methane in atmosphere oxidizes to carbon dioxide after a decade or two.

Select the correct answer using the code given below.

(a) 1 and 2 only     (b) 2 and 3 only       (c) 1 and 3 only         (d) 1, 2 and 3

Answer: D

3. The principle of 'common but differentiated responsibilities and respective capabilities', often talked about in media, refers to (UPSC CAPF 2022)
A. WHO's COVID-19 Global Vaccination Drive
B. contributions to the International Monetary Fund
C. reduction of greenhouse gas emissions
D. contributions to the United Nations Peacekeeping Operations
Answer: C
 
4. With reference to the Agreement at the UNFCCC Meeting in Paris in 2015, which of the following statements is/are correct? (UPSC 2016)
1. The Agreement was signed by all the member countries of the UN and it will go into effect in 2017
2. The Agreement aims to limit greenhouse gas emissions so that the rise in average global temperature by the end of this century does not exceed 2°C or even 1.5°C above pre-industrial levels.
3. Developed countries acknowledged their historical responsibility in global warming and committed to donate $ 1000 billion a year from 2020 to help developing countries to cope with climate change.
Select the correct answer using the code given below:
A. 1 and 3 only     B.  2 only        C. 2 and 3 only        D. 1, 2 and 3
 
Answer: B
 
5. A new type of El Nino called El Nino Modoki appeared in the news. In this context, consider the following statements: (UPSC 2010) 
1. Normal El Nino forms in the Central Pacific ocean whereas El Nino Modoki forms in the Eastern Pacific ocean.
2. Normal El Nino results in diminished hurricanes in the Atlantic ocean but El Nino Modoki results in a greater number of hurricanes with greater frequency.
Which of the statements given above is/are correct? 
A. 1 only       B. 2 only        C. Both 1 and 2             D. Neither 1 nor 2
 
Answer: B
 
 
6. La Nina is suspected to have caused recent floods in Australia. How is La Nina different from El Nino? (UPSC 2011) 
1. La Nina is characterized by unusually cold ocean temperature in the equatorial Indian Ocean whereas El Nino is characterized by unusually warm ocean temperature in the equatorial Pacific Ocean.
2. El Nino has an adverse effect on the south-west monsoon of India, but La Nina has no effect on the monsoon climate.
Which of the statements given above is/are correct? 
A. 1 only        B. 2 only         C. Both 1 and 2           D. Neither 1 nor 2
 
Answer: D
 
7. Consider the following statements:  (MPSC 2017)
a. La Nina is a little girl.
b. During the time of La Nina cold water in the ocean rises to the surface.
c. La Nina strengthens the Indian monsoon.
d. During the time of El Nino, trade winds weaken, and warm water moves east in the ocean. Which of the above statements is/are correct? 
A. Only a and b          B. a, b and c         C. Only b and c           D. All of the above
 
Answer: D
 
8. With reference to Ocean Mean Temperature (OMT), which of the following statements is/are correct? (UPSC 2020)
1. OMT is measured up to a depth of 26°C isotherm which is 129 meters in the south-western Indian Ocean during January-March.
2. OMT collected during January-March can be used in assessing whether the amount of rainfall in monsoon will be less or more than a certain long-term mean.
Select the correct answer using the code given below: 
A. 1 only        B. 2 only              C. Both 1 and 2            D. Neither 1 nor 2
 
Answer: B
 
9. With reference to 'Indian Ocean Dipole (IOD)' sometimes mentioned in the news while forecasting Indian monsoon which of the following statements is/are correct? (UPSC 2017)
1. IOD phenomenon is characterised by a difference in sea surface temperature between tropical Western Indian Ocean and tropical Eastern Pacific Ocean.
2. An IOD phenomenon can influence an EI Nino's impact on the monsoon.
Select the correct answer using the code given below:  
A. 1 only    B. 2 only          C. Both 1 and 2           D. Neither 1 nor 2
 
Answer: B
 
10. "EL Nino" refers to a temperature anomaly in the ________ ocean. (NTPC 2017)
A. Indian            B. Pacific        C. Southern             D. Atlantic
 
Answer: B
 
11. The Ministry of Environment, Forest and Climate Change recently published the draft Environment Impact Assessment (EIA) Notification, in 2020. Which of the following statements is correct about EIA? (Punjab Civil Service 2020)
1. It predicts the effect of a proposed industrial/infrastructural project on the environment.
2. It prevents the proposed activity/project from being approved without proper oversight or taking adverse consequences into account.
3. It compares various alternatives for a project and seeks to identify the one which represents the best combination of economic and environmental costs and benefits.
4. As per the new notification, Coal and non-Coal mineral prospecting and solar photovoltaic projects do not need prior environmental clearance.
Select the correct answer using the code given below:
A. Only 1 and 2
B. Only 2, 3 and 4
C. Only 1, 2 and 3
D. Only 1, 2 and 4
 
Answer: D
 
12. In the context of India’s preparation for Climate -Smart Agriculture, consider the following statements: (UPSC 2021)
1. The ‘Climate-Smart Village’ approach in India is part of a project led by the Climate Change, Agriculture and Food Security (CCAFS), an international research program.
2. The project of CCAFS is carried out under the Consultative Group on International Agricultural (CGIAR) headquartered in France.
3. The International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) in India is one of the CGIAR’s research centers.
Which of the statements given above is correct?
(a) 1 and 2 only                (b) 2 and 3 only              (c) 1 and 3 only                      (d) 1, 2 and 3
 
Answer: D

13. India’s ranking in the ‘Ease of Doing Business Index’ is sometimes seen in the news. Which of the following has declared that ranking? (UPSC 2016)

(a) Organization for Economic Cooperation and Development (OECD)
(b) World Economic Forum
(c) World Bank
(d) World Trade Organization (WTO)

Answer: C

14. With reference to ‘IFC Masala Bonds’, sometimes seen in the news, which of the statements given below is/ are correct? (UPSC 2016)

1. The International Finance Corporation, which offers these bonds, is an arm of the World Bank.
2. They are the rupee-denominated bonds and are a source of debt financing for the public and private sector.

Select the correct answer using the code given below:

(a) 1 only          (b) 2 only          (c) Both 1 and 2               (d) Neither 1 nor 2

Answer: C

Mains

1. Explain the purpose of the Green Grid Initiative launched at World Leaders Summit of the COP26 UN Climate Change Conference in Glasgow in November, 2021. When was this idea first floated in the International Solar Alliance (ISA)? (UPSC 2021)

2. Describe the major outcomes of the 26th session of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC). What are the commitments made by India in this conference? (UPSC 2021)

Source: The Hindu

 

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