Addressing Loss And Damage Caused Due To Climate Change: Climate Finance And The Law Of State Responsibility

Abstract

As the effects of climate change worsen, loss and damage is an unavoidable reality. A defining feature of the climate crisis is the unequal distribution of its causes and effects. Loss and damage will be most devastating in countries that have contributed the least to climate change, due to a combination of geographic and economic vulnerability. In response to this inequity, loss and damage has become a recent focus of international climate negotiations and has come to be regarded as the ‘third pillar’ of international climate change law, alongside mitigation and adaptation. Despite this newfound focus, however, vulnerable countries are becoming impatient at the lack of progress in establishing a mechanism to address loss and damage. This paper conducts an overview of loss and damage in the international climate regime and considers two alternate routes for how it could be addressed. Firstly, by way of the law of state responsibility, under which injured states may be able to see reparation for loss and damage from states that have states that have contributed heavily to climate change. Secondly, by way of climate finance mechanisms such as insurance, debt cancellation, and multilateral funds. After considering the strengths and weaknesses of each approach, this paper concludes that a multilateral fund presents the best opportunity to address loss and damage. Ultimately, however, a comprehensive approach to address loss and damage will likely require a combination of approaches accompanying a multilateral fund.