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

Climate change and development Protection against loss and damage

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 climate change impacts such as rising sea levels, desertification, and melting glaciers. The German Development Ministry assists people and countries in the Global South in adapting to such change, preparing for risks, and, where adaptation is not sufficient, managing loss and damage in the best possible way.

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

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, 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 losses and damages such as displacement, biodiversity loss, and the loss of traditions, languages, 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, assisting countries and people in preparing for, and protecting themselves against, climate-related damage.

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?'

Comprehensive risk management. In order to be able to quickly respond to imminent losses and damages, it is vital to prepare by taking 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 post-disaster recovery, is to launch transformative processes that increase resilience to future risks.

Global Shield against Climate Risks. The G7 and the V20 (Vulnerable Twenty, an alliance of countries that are 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 protection instruments – 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 eight pathfinder countries and one region. In April 2024, the Global Shield announced a cohort of five further partner countries.

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 to deal with this challenge worldwide 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 assume a meaningful role in that architecture and contribute to sustainably strengthening 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 help countries identify technical assistance needs and get in touch with organisations and experts offering relevant expertise and technical assistance.

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.

Climate change-induced migration. Climate change will be displacing more and more people. 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.