Understanding the scope of
funding for Loss and Damage
CCXG Global Forum
21 March 2023

Increasing hazards threaten fiscal sustainability, particularly for SIDS and LDCs
Reducing and managing risks from climate change: the role of finance
OECD, 2021, Managing Climate Risks, Facing up to Losses and Damages, Paris, OECD Publishing
The effect of repeated cyclones of Dominica’s government’s debt

Government exposure to climate hazards
Loss and damage to
national public assets
and infrastructure
Loss and damage to
private assets (homes
and businesses)
Loss and damage to
sub-national public
assets and
infrastructure
Climate hazards
Emergency relief
and recovery
expenditure to
support affected
Reconstruction
of damaged
national public
assets and
infrastructure
Support for
reconstruction
of damaged sub-
national public
assets/
infrastructure
Support for lost
income/
revenue and
reconstruction
of damaged
homes and
businesses
Explicit liabilities
(assess, mitigate)
Implicit liabilities
(identify/define, mitigate)
OECD, 2022, Building Financial Resilience to Climate Impacts, Paris, OECD Publishing

An ideal risk management strategy employs and blends approaches of risk
reduction, risk retention and risk transfer in a comprehensive manner
OECD, 2021, Managing Climate Risks, Facing up to Losses and Damages, Paris, OECD Publishing

Considerations for the discussion
• Earmarked funding for L&D requires clear differentiation of support for L&D from that for
adaptation, disaster risk reduction and humanitarian assistance.
• The contextual nature of losses and damages calls for tailored approaches that are responsive
to country needs and their circumstances.
• Consideration will have to be given to countries that are no longer eligible to Official
Development Assistance but highly exposed and vulnerable to climate hazards.
• A focus on making more effective use of the finance available must be complemented with a
focus on growing the resource pool.

THANK YOU!
www.oecd.org/env/cc/losses-and-damages