A road in the Caribbean nation of St Lucia was washed away after heavy rain.

Climate change and development policy Protection against loss and damage

Many extreme weather events such as floods and droughts are becoming more frequent and more intensive as a result of climate change. In addition, the world is faced with slow-onset environmental change such as rising sea levels, desertification, and melting glaciers. The German Development Ministry (BMZ) is assisting partner countries and particularly vulnerable population groups with regard to adapting to such change, assessing risks, and optimising anticipatory action to deal with loss and damage.

Construction of a embankment on the banks of the Mayur River in the town of Khulna in south-western Bangladesh

The impact of climate change is posing a threat to many people's livelihoods and to sustainable development worldwide. The UN-defined groups of least developed countries (LDCs) and small island developing states (SIDS) – and socially disadvantaged population groups – are hardest hit by this impact. They contribute least to climate change, yet often they do not have the resources needed to deal with its impacts.

In such settings, the consequences of climate change cause economic losses and damages, such as crop loss from droughts and destruction of homes and businesses by storms. They also contribute to displacement, ecosystem loss, and loss of traditions, languages, and people's living environments. Such losses and damages often affect people for many generations – their options in life, their food security, and the social stability of their communities.

Germany is addressing this through its development policy, assisting partner countries in preparing for risks, preventing imminent loss and damage, and protecting themselves against climate-related damage. Prevention is more cost-effective than ad hoc assistance after a crisis. The BMZ is therefore putting an increased focus on anticipatory, systematic action.

Video: Loss and damage

Integrated climate risk management cycle

What the BMZ is doing

Still from the video 'Climate Risk Management: How can we respond?'

The main contributors to climate change – that is, the industrialised countries and, more recently, also some emerging economies and developing countries – have a special responsibility to lead by example and work towards more climate justice. This involves supporting developing countries' efforts to make their economies climate neutral and adapt to the impacts of climate change, and assisting them in responding to climate change-related losses and damages.

Comprehensive risk management. In order to be able to prevent climate change-induced losses and damages, and to respond quickly when they occur, it is vital to analyse risks early on. The BMZ's comprehensive risk management approach combines climate change mitigation and adaption with anticipatory action to deal with disaster and climate risks.

This approach relies on both tried-and-tested and innovative instruments for climate change mitigation and adaptation, disaster risk management, climate risk finance, and social protection. And the instrument of transitional development assistance provides a stepping stone between humanitarian aid and long-term development cooperation. The purpose of all these efforts is to strengthen the resilience of people, communities and institutions and to stabilise fragile contexts, including with a view to the period of post-disaster reconstruction and economic recovery.

Global Shield against Climate Risks. The V20 (Vulnerable Twenty, an alliance of countries that are particularly vulnerable to climate change) and the G7 are jointly developing tools for climate risk protection and preparedness. The Global Shield initiative was launched at the climate conference in Sharm el-Sheikh, Egypt, in 2022. Its purpose is to facilitate rapid, needs-based support in response to extreme weather events. The Global Shield is active in Bangladesh, Costa Rica, Gambia, Ghana, Madagascar, Malawi, Pakistan, Peru, Philippines, Rwanda, Senegal, Somalia and the Pacific region.

Implementation of agreements made at international climate negotiations. Under the heading of Loss and Damage, discussions are under way under the umbrella of the UN Framework Convention on Climate Change (UNFCCC) and within the framework of the Paris Agreement on how the international community can respond to loss and damage and how to provide better financial and technical assistance to vulnerable countries in the future. At the 2023 climate conference in Dubai, participants agreed that a support architecture should be set up. The BMZ is working to make sure that the newly established Fund for responding to Loss and Damage (External link) (FRLD) will play an important role in that architecture and strengthen national capacity for dealing with loss and damage. Germany also supports the Santiago Network (External link), which was founded in 2019. Its purpose is to assist countries in identifying technical assistance needs and getting in touch with organisations and experts offering relevant expertise.

The BMZ wants to remain involved in giving shape to these global support structures so that they will reach, in particular, those countries and people that are especially affected by climate change.

Human mobility in the context of climate change. The consequences of climate change have an impact on migration and displacement. Mobility in the context of climate change typically takes place within a given country or region. The BMZ is pursuing a comprehensive approach, which also takes into account migration as an adaptation strategy,

Biodiversity and climate. Healthy ecosystems such as mangroves and forests provide natural protection against the impacts of climate change. They mitigate the effects of storms and floods, serve as carbon sinks and protect important sources of livelihood. The BMZ is supporting their conservation and restoration – as a form of climate action and as a contribution to crisis preparedness.