Finance for Loss and Damage: a comprehensive risk analytical approach

Mechler, R. ORCID: https://orcid.org/0000-0003-2239-1578 & Deubelli, T. (2021). Finance for Loss and Damage: a comprehensive risk analytical approach. Current Opinion in Environmental Sustainability 50 185-196. 10.1016/j.cosust.2021.03.012.

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Project: REmote Climate Effects and their Impact on European sustainability, Policy and Trade (RECEIPT, H2020 820712)

Abstract

The climate policy discourse on Loss and Damage has been considering options for averting, minimizing and addressing critical and increasingly systemic climate-related risks in vulnerable countries. Research has started to identify possible finance sources and mechanisms, but stopped short of positioning those options along a comprehensive risk management framework in line with the whole scope of Loss&Damage. BuildingTaking a risk analytical perspective, we present a comprehensive Loss and Damage finance taxonomy and framework made up of three pillars: finance for transformational risk management to reduce risks and adapt to climate change, risk finance to provide insurance and other risk transfer for residual risks in vulnerable countries as well as curative finance for potential unavoidable loss of ecosystems and livelihoods. We apply this taxonomy and sets of finance options to recently identified limit-prone sectors and regions that are projected to experience soft and hard limits as a consequence of slow-onset climate-related phenomena.

Item Type: Article
Research Programs: Advancing Systems Analysis (ASA)
Advancing Systems Analysis (ASA) > Systemic Rick and Resilience (SYRR)
Depositing User: Luke Kirwan
Date Deposited: 07 Jun 2021 07:10
Last Modified: 27 Aug 2021 17:34
URI: http://pure.iiasa.ac.at/17239

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