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Climate change and development Protection against loss and damage
The impact of climate change is posing a threat to many people's livelihoods and to sustainable development worldwide. The least developed countries and small island developing states – and marginalised population groups – are hardest hit by this impact, even though they have contributed least to climate change.
That is why the BMZ is putting a strong focus on assisting people and countries in adapting to the consequences of climate change and becoming more resilient to its impacts.
However, in some cases adaptation measures are simply not affordable, or unacceptable to the public, or technically not feasible. In such instances, climate change may result in economic losses and damages such as crop loss from droughts and destruction of homes and businesses by storms. However, there may also be non-economic consequences such as displacement, biodiversity loss, and even the loss of traditions and people's living environments. The losses and damages caused by climate change are posing major challenges for many people and countries.
Germany is addressing this through its development policy, working with the countries and people in question to develop solutions to help them prepare for, and protect themselves against, loss and damage.
Video: Loss and damage
What the BMZ is doing
Global Shield against Climate Risks. The G7 and the V20 (Vulnerable Twenty, an alliance of 58 countries particularly vulnerable to climate change) are jointly expanding efforts in the field of loss and damage protection and preparedness. The purpose of the Shield is to develop financial protection solutions – in line with each country's needs – that facilitate quick and targeted disbursement of funds when extreme weather events cause climate-related damage. The initiative was launched at the climate conference in Sharm el-Sheikh, Egypt, in 2022. It is now being piloted in the first countries, referred to as Pathfinder Countries.
International climate negotiations. Under the heading of Loss and Damage, discussions are under way among the parties to the UN Framework Convention on Climate Change (UNFCCC) about how to deal with this challenge worldwide and how to provide better financial and technical assistance to vulnerable countries in the future. This topic is tied up closely with the responsibility of the industrialised countries for causing climate change and with the associated question of climate justice. Germany is working for a solution that will serve the interests of the most vulnerable countries. Germany wants to build bridges between developing and industrialised countries.
Comprehensive risk management. In order to be able to quickly respond to imminent losses and damages, it is vital to take account of the specific existing risks. Comprehensive risk management combines strategies and measures to reduce disaster and climate risks. Such risk management is the guiding approach for averting, minimising and addressing climate-related loss and damage. Instead of pursuing isolated measures, the BMZ combines tried-and-tested instruments and innovative instruments for climate change mitigation and adaptation, disaster risk management, climate risk finance, and social protection to form a comprehensive approach. The instrument of transitional development assistance provides a stepping stone between development cooperation and humanitarian aid. The purpose of all these efforts, be it in the context of adaptation or in the context of recovery after a disaster, is to launch transformative processes that help to increase resilience to future risks.
The Global Shield is part of comprehensive risk management. It can make a key contribution, in particular, to financial protection against loss and damage and to the BMZ's further bilateral activities.
Climate change-induced migration. In future, more and more people will be displaced by the consequences of climate change. The BMZ is providing assistance to people faced with situations that force them to migrate.
Biodiversity and climate. Healthy ecosystems can reduce people's vulnerability to climate change and enhance their resilience. For example, mangrove forests form a natural barrier against storms and tsunamis.
As at: 18/08/2023