At the Germany-Caribbean Climate Talks event, “Loss and Damage in the Caribbean: The Toll of the Climate Crisis”, senior officials from Saint Lucia and Germany agreed that the highly-celebrated loss and damage fund to address worsening climate change impacts is now at risk of being severely underfunded, and international cooperation on this issue is now a matter of urgency particularly for the Caribbean.

Hosted by German Ambassador, His Excellency Dr. Christophe Eick, Special Envoy for Climate Issues in the Caribbean, the event was held in Saint Lucia on Tuesday, Sep. 17, and featured the Hon. Minister Shawn Edward, Minister for Education, Sustainable Development, Innovation, Science, Technology and Vocational Training. The event was facilitated in collaboration with Climate Analytics Caribbean.

The event was of particular significance due to the landmark agreement at last year’s United Nations climate change negotiations, COP28, to establish a loss and damage fund to specifically address climate change impacts which can not be mitigated or adapted to. This was a historic achievement for the Caribbean region, as officials from Saint Lucia and other islands were instrumental to the thirty-year fight to create this funding facility to support vulnerable countries.

However, almost one year later, many countries are warning that the capitalization of the fund – which is comprised of approximately $661 million in country pledges – is far beyond the trillions needed to effectively address loss and damage. At COP29 this year, the establishment of a New Collective Quantified Goal on climate finance (NCQG) as well as the proper funding and operationalisation of the loss and damage fund will take center stage.

“Germany has been an early advocate of the Loss and Damage fund and has already committed $100 million to the fund,” noted Dr. Eick. “National efforts to address loss and damage remain essential. Meanwhile, vulnerable countries should continue to invest in Climate Risk Insurance, and through these facilities significant payouts were made to vulnerable countries after Hurricane Beryl. Fundamentally, the biggest contribution a country like Germany can do is to limit and stop emitting greenhouse gases which exacerbate climate change.”

Said Minister Edward: “Our need for financial resources, further to technology transfer and capacity building, to support our planning and recovery efforts from climate related events is growing. The continuous trend of rising temperatures is impacting our lives, livelihoods, our food and water security. The upcoming COP, dubbed the ‘Climate Finance COP’, will bring the issue of implementation and tangible climate action into sharp focus. We need support from essential development partners, we need global and decisive leadership on climate finance, and we need it now.”

“Saint Lucia continues to lead by example, investing in renewable energy. Recently, our government approved an Energy Policy for 2023-2030 which fulfils our NDC commitments, underscores our dedication to strengthening energy security, and reduces supply costs. We have also enacted legislation in that regard, with the Climate Change bill becoming law in Saint Lucia this year.”

Rueanna Haynes, Director of Climate Analytics Caribbean, noted that Climate Analytics Caribbean is currently conducting an extensive report on loss and damage specifically in the Caribbean, with the aim of enhancing the available data and better supporting regional governments.

“Loss and damage is being reported generally as an ‘economic loss’, demonstrating that there is a gap in how we in the region are understanding and reporting about loss and damage,” said Ms. Haynes. “We need to develop a common regional approach for loss and damage reporting. This will deepen regional coordination and assist in accessing more funding for our region.”

Crispin d’Auvergne, Climate Change and Disaster Risk Management Coordinator of the Organisation of Eastern Caribbean States (OECS), reiterated that loss and damage goes beyond economic loss.

“For the Caribbean, improved and broader assessment of loss and damage is critical, as how do we value our archaeological sites, or coral reefs? Presently the loss and damage fund is capitalised far below what is required. A recommendation is that a percentage of the fund be invested in parametric coverage. We look forward to pursuing a relationship with Germany on tailoring approaches for the unique needs of OECS countries.”

The event also featured Dr. James Fletcher, Chairman of the Executive Board of the Caribbean Centre for Renewable Energy, who was a key champion in the decades-long fight for a loss and damage fund within the UN climate change negotiations.

“What we got last year, as promising and impressive as it was, only represent 0.2% of what is required on an annual basis for the Caribbean,” noted Dr. Fletcher. “The annual adaptation costs in developing countries are in the range of US$ 160-340billion - we are way past the $100billion requirement. The estimates of the annual cost of loss and damage in developing countries alone amounted to at least $435 billion in 2020, a figure that is expected to rise by 2030.”

The event concluded with stirring remarks from Ms. Keithlin Caroo-Afrifa, founder of the civil society organisation, Helen’s Daughters, which supports women farmers.

“The impacts of climate change on the human psyche cannot be quantified in dollars and cents,” she said. “Resilience is not just about recovery but about having the resources to continue to thrive despite the challenges we face. CSOs are left to fill gaps using limited donor funding to support disaster relief and recovery, which is not sustainable in the long term. CSOs play a vital role in advocating for the needs of marginalized communities, if we are not adequately included in the decision-making processes, the resulting policies may fail to address the realities on the ground.”

Negotiations on climate finance and the loss and damage fund resume at COP29 in Baku, Azerbaijan, from November 11 to 22.