What Is 'Loss and Damage' from Climate Change?

The document defines 'loss and damage' as climate change consequences that exceed human adaptation limits, categorizing them into economic losses (e.g., infrastructure damage) and non-economic losses (e.g., cultural loss). It details the evolution of UN negotiations, from the 1991 proposal by Vanuatu to the 2023 operationalization of the Fund for Responding to Loss and Damage (FRLD), which had pledges totaling $768.4 million as of April 2025. The text emphasizes that this funding is far below the estimated $580 billion needed by vulnerable countries by 2030 and argues for a 'mosaic of solutions' combining public, private, and innovative funding sources to support activities such as humanitarian aid, relocation, and livelihood restoration.

• Loss and damage refers to climate change consequences that surpass the ability of people to adapt, including cases where adaptation options exist but the necessary resources to access them are unavailable.
• Climate impacts are categorized into economic losses, affecting market-traded resources and infrastructure, and non-economic losses, which include the loss of family members, cultural identity, and ancestral homes.
• The Intergovernmental Panel on Climate Change (IPCC) identifies 'soft' limits to adaptation, where resources are lacking, and 'hard' limits, where avoiding intolerable risks is no longer reasonable; for example, 70% to 90% of tropical coral reefs are projected to die by mid-century even if warming is limited to 1.5 degrees C.
• The Fund for Responding to Loss and Damage (FRLD) was operationalized in 2023 with the Philippines as the host country and the World Bank as the host institution; as of April 2025, total pledges to the fund are $768.4 million.
• Current financial pledges for loss and damage are significantly insufficient, as vulnerable countries may require up to $580 billion for climate-related damages by 2030.
• To avoid legal liability and compensation claims from developed nations, the agreements at COP27 and COP28 specify that loss and damage funding is based on 'cooperation and facilitation'.
• Addressing loss and damage requires a 'mosaic of solutions' including the FRLD, humanitarian aid, insurance, and innovative sources such as taxes on shipping, air travel, or fossil fuel windfall profits.

APA

World Resources Institute (2025). What Is 'Loss and Damage' from Climate Change? https://www.wri.org/insights/loss-damage-climate-change

Chicago

World Resources Institute. What Is 'Loss and Damage' from Climate Change? 2025. https://www.wri.org/insights/loss-damage-climate-change.

Wikipedia

{{cite report |author=World Resources Institute |title=What Is 'Loss and Damage' from Climate Change? |date=5 May 2025 |url=https://www.wri.org/insights/loss-damage-climate-change |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitute2025what, author = {{World Resources Institute}}, title = {{What Is 'Loss and Damage' from Climate Change?}}, institution = {World Resources Institute}, year = {2025}, month = may, url = {https://www.wri.org/insights/loss-damage-climate-change}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }