Climate Finance: Tackling Loss and Damage

Caroline Lucas Excerpts

Tuesday 5th September 2023 Westminster Hall

[Chris Law (Dundee West) (SNP)]

I beg to move,

That this House has considered climate finance for tackling loss and damage.

July was the hottest month in global history. In three months the world will gather in one of the hottest regions of the world for COP28. All summer we have heard about and seen the impacts that climate change is having—impacts that will only get worse—and the need for urgent action could not be clearer. Simply put, this is the biggest, most existential threat to humanity and our planet, and I put it on the record that I am utterly disappointed that not one MP from the governing Conservative party is here other than the Minister.

The international community has come together in recent years to recognise the urgent need for financial support to combat climate change. Prominent milestones at various COPs over have established ambitious targets for climate finance. However, a fundamental problem persists. It is crucial to acknowledge that, despite the pledges and commitments, a substantial gap remains between promise and fulfilment, perhaps illustrated most starkly by the collective goal of mobilising $100 billion a year by 2020 for climate action in developing countries, agreed in Copenhagen at COP15 in 2009. This has still not yet been achieved.

To date, climate finance to developing countries has been focused on mitigation—namely, efforts to reduce and prevent the emission of greenhouse gases and adaptation—and adjusting to and building resilience against current and future climate change impacts. However, harms and losses will still be experienced by communities and ecosystems due to climate change that cannot be effectively mitigated or adapted to.

Loss and damage funding refers to the financial assistance provided to countries and communities dealing with the irrevocable consequences of climate change. It encompasses the destruction of infrastructure, the displacement of communities, the erosion of cultural heritage and, heartbreakingly, extensive loss of life.

At COP27 in November 2022 we witnessed a historic turning point in our global commitment to address loss and damage. An agreement was reached to establish a dedicated fund aimed explicitly at supporting vulnerable nations and communities grappling with the irreversible effects of climate change. The agreement underscored the urgency of recognising that climate finance is not solely about reducing emissions and adapting to changing conditions. It is also about providing financial redress to those who bear the brunt of climate impacts, often with the least historical responsibility for causing the crisis.

[Caroline Lucas (Brighton, Pavilion) (Green)]

I congratulate the hon. Member on securing this important debate. When it comes to finance for loss and damage, does he agree with me that that finance has to be new and additional, not redirected from existing budgets? If we are looking for places where we might find such new and additional finance, if we put the polluter pays principle at the heart of this debate, we could, for example, look at the grotesque profits of the oil and gas companies, which amounted to a staggering $134 billion globally last year, or the billions that go into fossil fuel subsidies. Does he agree with me that that would be a good place to start to get the money we need for such a vital fund?

[Chris Law]

Not only do I completely agree, but I suspect my papers have been leaked because I was about to come on to that point. I completely agree that new and additional finance is key and I look forward to what the Minister will say. I will touch on that topic in more depth shortly.

There is no doubt the UK has contributed significantly to the climate emergency through its historical greenhouse gas emissions. From 1750 to the present day it is the seventh highest CO₂ emitter with just over 3% of estimated historical emissions. In contrast, the entire continent of Africa has a 3% share of cumulative CO₂ emissions and Oceania only 1%—two of the regions already the most devastated by the climate catastrophe.