Researchers working at the Heinrich Boll Foundation in Berlin have found that funding for climate damage and loss is woefully inadequate. Approximately $300 billion dollars is needed every year to assist countries tackle unavoidable climate-related losses. These funds can help people who lose their land as sea levels rise, or help those forced to migrate due to drought. Funding will need to come from innovative sources like a carbon tax or financial transaction tax.
A shortage of funding means there is no point even thinking about financial damage and financial losses. An absence of money means no reduction of risk, disaster recovery financing and development. A report released by the United Nations during the Bonn climate negotiations states that nearly $50 billion will be required every year by 2020. The money will go to people who have lost their culture and land. The money is also for people who are compelled to migrate due to climate related problems. This quantum of money, according to Liane Schalatek and Julie Anne Richards, the authors of this report, will increase to $300 billion every year by 2030.
This amount will be above and beyond the funding amount of $100 billion within 2020 that the more prosperous countries have pledged to give to their poorer counterparts as per the Paris Agreement. This will assist the poorer countries to develop in a clean manner, as well adapt to the impacts of climate change. This pledge, however, is extremely unlikely to be satisfied as President Donald J. Trump of the United States has repeatedly said that under his leadership, the U.S. will not provide $2 billion that the country had earlier promised the Green Climate Fund.
Only innovative financing can provide the cash needed to manage the “loss and damage” caused by climate change. The list of such financing includes a financial transaction tax, new carbon tax or an aviation tax among others. This money, as per the authors of the report, could quench the finance gap. They offered the suggestion that no new administrative body be created to tackle and distribute these funds. The money should be funneled through existing organizations like the Global Environment Facility and the Green Climate Fund. Harjeet Singh, of ActionAid, a charity, concurs. He said that setting up any new funding body for loss and damage makes zero sense. Problems arise when action needed to stop climate change does not do as well as expected.