How to make loss and damage finance fair for the Global South

The document argues that loss and damage (L&D) finance is a matter of climate justice and that the Global South must maintain a unified negotiating position to secure grants-based funding. It reviews the operationalization of the Loss and Damage Fund and the Santiago Network, while warning against the use of loans that increase external debt. The brief highlights the strategic role of Brazil's G20 presidency and COP30 in advancing a holistic development and environment agenda, and calls for the New Collective Quantified Goal on Climate Finance to include separate sub-goals for adaptation and L&D to prevent double counting.

• Loss and damage (L&D) is framed as a climate justice issue, where financial support is justified as compensation for irreversible climate impacts affecting the most vulnerable communities. The economic cost of L&D is estimated to reach $400 billion annually by 2030, with other studies suggesting a range between $290 billion and $580 billion.
• The Global South should negotiate as a unified bloc through the G77 and China to establish a New Collective Quantified Goal on Climate Finance. This goal must include separate sub-goals for adaptation and L&D to avoid the 'double counting' of finance, where developed countries report the same funds for both purposes.
• Climate finance for the Global South is increasingly provided as loans rather than grants, exacerbating external debt. In 2021, of the $69.6 billion received for adaptation or emission cuts, $53.2 billion was new debt, with only half provided on concessional terms; least developed countries (LDCs) financed at least half of their climate projects through debt.
• The Loss and Damage Fund, operationalized at COP28, allows all developing countries to be eligible for funds and features a board with 14 representatives from developing countries and 12 from developed countries. However, initial pledges of $792 million are considered far below the actual needs.
• The Santiago Network on Loss and Damage, designed to provide technical assistance, has faced delays due to a lack of consensus among Global South countries regarding the location of its head office. It was eventually decided that the head office would be in Geneva, despite a recommendation for Nairobi.
• Brazil is positioned as a critical actor for the Global South due to its 2024 G20 presidency and hosting of COP30 in 2025. It has the opportunity to lead a 'Global South troika' with India and South Africa to prioritize climate finance for the most vulnerable and reform the International Monetary Fund (IMF).

APA

South African Institute of International Affairs (2024). How to make loss and damage finance fair for the Global South. https://saiia.org.za/research/how-to-make-loss-and-damage-finance-fair-for-the-global-south/

Chicago

South African Institute of International Affairs. How to make loss and damage finance fair for the Global South. 2024. https://saiia.org.za/research/how-to-make-loss-and-damage-finance-fair-for-the-global-south/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=How to make loss and damage finance fair for the Global South |date=25 July 2024 |url=https://saiia.org.za/research/how-to-make-loss-and-damage-finance-fair-for-the-global-south/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2024how, author = {{South African Institute of International Affairs}}, title = {{How to make loss and damage finance fair for the Global South}}, institution = {South African Institute of International Affairs}, year = {2024}, month = jul, url = {https://saiia.org.za/research/how-to-make-loss-and-damage-finance-fair-for-the-global-south/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }