The Future is Equal

Climate Breakdown

New Oxfam report shows broken promises on climate finance

A new report out this week titled ‘Climate Finance Shadow Report’ from Oxfam shows New Zealand still has much more to do to support poorer countries adapt and respond to the climate crisis.   

Oxfam Aotearoa’s Climate Justice Lead Nick Henry said:  

“Oxfam’s report reveals that as governments around the world begin negotiations of a new global goal for climate finance, rich countries have already broken their promise to deliver US$100 billion a year to assist developing countries.  

“The New Zealand Government is doing better than most on climate finance, but unfortunately the bar is very low. It is time for New Zealand to commit to increasing its climate finance and call on other rich countries to do the same. And deliver on their promises.  

“The new report reveals that globally only a quarter of climate finance is given as grants, meaning most climate finance is provided in the form of loans. Although the New Zealand Government has a long way to go in order to do its fair share, one positive take away is that New Zealand has a strong commitment to give climate finance as grants, not loans.  Loans only increases the burden on poorer countries as they take on expensive debt. Debt created from the failure of rich countries to deliver on their promises. 

“It is also encouraging to see New Zealand increasingly integrate gender-equitable approaches to climate finance, but the Government is a long way off from making sure that the needs of people in all their diversity are met. New Zealand must stand with our whānau in the Pacific – the women, girls, and LGBTIQA+ and others who are on the frontlines of the climate crisis. 

“Rich countries must find new ways to fund climate finance by taxing the wealthiest and the big polluters. In addition, Oxfam Aotearoa calls for new and additional finance to respond to loss and damage caused by climate change. This is a separate negotiation leading up to COP28, and should come with new funding.”  

 

Notes: 

Click here for the report: https://www.oxfam.org.nz/wp-content/uploads/2023/06/Climate-Finance-shadow-report.pdf  

New Zealand’s current climate finance commitments end in 2025. Commitments for the next period from 2026 will need to contribute New Zealand’s fair share of the new global quantified goal on climate finance to be set at COP28 in December. Discussions on the process for setting the new global goal are underway this week in Bonn, at the intersessional meeting of parties to the UN Framework Convention on Climate Change. 

Rich countries’ continued failure to honour their US$100 billon climate finance promise threatens negotiations and undermines climate action

Rich countries’ continued failure to honor their $100 billon climate finance promise threatens negotiations and undermines climate action

As global greenhouse emissions continue to rise, and climate change wreaks more havoc upon the people and places least responsible for the problem, rich polluting countries are now three years overdue on their promise to mobilize $100 billion a year in climate finance for low- and middle-income countries.

To make matters worse, says Oxfam, the actual support they provide is much less than reported numbers suggest, and is coming mostly as debt that has to be repaid.

Oxfam’s ‘Climate Finance Shadow Report 2023’ published today shows that while donors claim to have mobilized $83.3 billion in 2020, the real value of their spending was —at most— $24.5 billion. The $83.3 billion claim is an overestimate because it includes projects where the climate objective has been overstated or as loans cited at their face value.

By providing loans rather than grants, these funds are even potentially harming rather than helping local communities, as they add to the debt burdens of already heavily indebted countries —even more so in this time of rising interest rates.

Donor countries are repurposing up to one-third of official aid contributions as climate finance rather than putting forward new and additional money, while more than half of all climate finance going to the world’s poorest countries is now coming as loans.

Among bilateral providers, France has the highest share of its bilateral public climate finance through loans, at a staggering 92 percent. Other loan-heavy culprits include Austria (71 percent), Japan (90 percent), and Spain (88 percent). In 2019–20, 90 percent of all climate finance provided by multilateral development banks, like the World Bank came as loans.

“This is deeply unjust. Rich countries are treating poorer countries with contempt. In doing so, they are fatally undermining crucial climate negotiations. They’re playing a dangerous game where we will all lose out,” said Oxfam International’s Climate Change Policy Lead, Nafkote Dabi.

In the lead up to the Bonn Climate Summit (5 to 15 June), Oxfam also finds that climate-related development financing is largely gender-blind. Only 2.9 percent of all funding identified gender equality as worth prioritizing. Only one-third of climate finance projects in 2019-2020 mainstreamed gender, meaning that they took into account both women and men’s specific needs, experiences and concerns.

Oxfam estimates that the real value of funds allocated by rich countries in 2020, to support climate action in low- and middle-income countries was between $21 billion and $24.5 billion, of which only $9.5 billion to $11.5 billion was directed specifically for climate adaptation —crucial funding for projects and processes to help climate-vulnerable countries address the worsening harms of climate change.

“Don’t be fooled into thinking $11.5 billion is anywhere near enough for low- and middle-income countries to help their people cope with more and bigger floods, hurricanes, firestorms, droughts and other terrible harms brought about by climate change,” Dabi said. “People in the US spend four times more than that each year feeding their cats and dogs.”

Oxfam is highly concerned that adaptation funding is given too little attention when, in the past three years, India, Pakistan and Central and South America have all seen record heatwaves, in Pakistan later followed by flooding that affected over 33 million people, while East Africa is mired in its worst drought in over 40 years, contributing to crisis levels of hunger.

“Despite their extreme vulnerability to climate impacts, the world’s poorest countries, particularly the least developed countries and small island developing states, are simply not receiving enough support. Instead, they are being driven deeper into debt,” Dabi said. 

The expectation that private investors can be mobilized by low- and middle-income countries to contribute a sizeable chunk of climate financing has not materialized, raising only $14 billion yearly, mainly for mitigation. Oxfam says it is difficult to find details on how this private finance is used or who benefits from it. According to a recent Organization for Economic Co-operation and Development (OECD) report, mobilized private adaptation financing rose sharply from $1.9 billion in 2018 to $4.4 billion in 2020, mainly because of a big liquefied natural gas energy project in Mozambique that does not reveal any adaptation activities.

Oxfam is highly concerned that funding for “loss and damage” —climate impacts that cannot or have not been mitigated or adapted to— still has no predictable place within the international climate finance architecture. Loss and damage finance needs are urgent, with estimates saying that low- and middle-income countries could face costs of up to $580 billion annually by 2030.

Oxfam says that ongoing deliberations under the UN Framework Convention on Climate Change (UNFCCC) to set a new global goal on mobilizing climate finance from 2025 onwards is a chance to rebuild trust between rich and low- and middle-income countries. But if past mistakes are not resolved and simply repeated, this initiative will have failed before it properly starts.

Climate finance providers should be massively scaling-up their efforts and be reporting climate financing on a case-by-case basis, highlighting the actual proportions channeled towards mitigation and adaptation. There is equally an urgent need for more grant-based financing for climate action, and less momentum toward loaning the money they have all promised to give. 

Notes to editors 

Download Oxfam’s ‘Climate Finance Shadow Report 2023’.

In East Africa alone, drought and conflict have left a record 36 million people facing extreme hunger, nearly equivalent to the population of Canada. Oxfam estimates that up to two people are likely dying from hunger every minute in Ethiopia, Kenya Somalia, and South Sudan.

The UN currently designates 46 countries as LDCs.

According to the OECD, mobilized private adaptation financing rose sharply from $1.9 billion in 2018 to $4.4 billion in 2020, mainly because of a big liquefied natural gas energy project in Mozambique that does not reveal any adaptation activities.

According to Anil Markandya and Mikel González-Eguino (2018), the costs of loss and damage in low- and middle-income countries could reach between $290 billion to $580 billion a year by 2030.

According to the American Pet Products Association, Americans spent $58.1 billion on pet food and treats in 2022. 

Rich countries’ climate related aid to West Africa is insufficient and dangerously worsening debt levels

Rich countries and multilateral donors have so far mobilised only 7 percent of the estimated US$198.88 billion that West African countries need by 2030 to cope with the climate crisis and pursue their own green development.

According to a new Oxfam study today, Climate Finance in West Africa, 62 percent of US$11.7 billion declared by donors between 2013 and 2019 have been mostly in the form of loans, which will have to be repaid, many with interest, aggravating the debt crisis in most West African countries.

Climate finance is a highly-contentious issue that again threatens the success of the crucial UNFCCC climate talks in Egypt this November. Oxfam and a hundred African civil society organizations are concerned that African countries will come to the summit with little confidence that donors will honour their repeated promises to mobilise 100 billion a year for climate action in developing countries (a target that has been missed by US$16.7 billion in 2020).

These organisations are calling on rich countries – historically responsible for climate change – to assume their fair share to help the region face the escalating climate crises that has hit the African continent.

The report warns that rich countries are increasingly using loans to help West African countries cope with climate change. Between 2013 and 2019 loans have increased by 610 percent from US$243 million to US$1.72 billion. By comparison, grants have only increased by 79 percent. Among the donors that have made the most use of loans as a proportion of their total climate financing are the World Bank (94 percent), France (94 percent), Japan (84 percent), the African Development Bank (AfDB) (83 percent) and the European Investment Bank (EIB) (79 percent).

“At a time when West Africa is reeling from multiple crises including climate, hunger, and security, these financial flows are grossly inadequate and not what was promised. Many of these are now loans that actually reduce countries’ capacity to cope. Most countries are falling into a spiral of debt and poverty, which runs counter to the spirit of climate justice. The consequences are disastrous for millions of people who are paying the price for the impacts of climate change yet not responsible for it,” said Assalama Dawalack Sidi, Oxfam’s Regional Director for West and Central Africa.

  • The consequences on debt and the capacity of countries to provide basic services to populations facing multiple crises are very real. For example:
    Although Niger (7th most vulnerable country in the world to climate change), Mali (13th most vulnerable), and Burkina Faso (24th most vulnerable) all face a risk of debt distress, they have received a sizable share of climate finance in the form of loans and debt: 51 percent, 43 percent, and 41 percent, respectively. These countries are already being pushed into a new wave of austerity measures by the IMF and are planning combined budget cuts of US$7.2 billion by 2026 which will further limit their ability to invest in quality public services and protection for their citizens.
  • Ghana currently receives 40 percent of its climate finance in the form of loans and debt, despite already being at high risk of debt distress. In 2019, Ghana was spending 55 times more on debt servicing than on agriculture. It is planning a US$23.3 billion budget cut by 2026.

Oxfam believes that funding in West Africa should focus on adaptation measures, rather than mitigation given the region is a very low contributor to global greenhouse gas emissions. However, there is an 82 percent gap between the adaptation funding reported in 2019 and the needs expressed by West African countries.

Chad, the world’s most vulnerable and least prepared country for climate change, has the largest funding gap for adaptation with 95 percent of its financial needs not covered (US$1.49 billion of US$1.57 billion per year) by 2030. These findings are all the more alarming given that hunger is increasing at an unprecedented rate in the region, in part driven by droughts that are becoming more frequent and severe as rainfall becomes more erratic and unpredictable. There has been a 154 percent increase in the number of people now food insecure between March-May 2022 compared to the five-year average between 2017-2021.

“We demand that all donors urgently increase their climate financing and honour their promises. These funds must be disbursed as grants not loans and must respond to the priorities and adaptation needs of recipient countries and their communities,” said Sidi.

The report’s recommendations support the recent joint statement by two dozen African leaders meeting earlier this month at a forum in Cairo, where they urged the richest countries to uphold their aid pledges so the continent can tackle the effects of climate change for which it shares little blame.

The report is being published ahead of citizen caravans organised by about 100 African civil society organisations, including Oxfam, that will travel across 23 countries on the continent to Egypt. The caravans will mobilise communities and policy makers along the way to highlight the harm that climate change is causing to Africa and demand more justice in climate finance.

“As Africa heats up, African communities’ temperature is rising too. Today, people are uniting to demand more climate justice. The international community, and rich donors in particular, must urgently hear their cries,” said Sidi.

 

Notes to the editors

  • Download the report Climate Finance in West Africa: Assessing the State of Climate Finance in One of the World’s Regions Worst Hit by the Climate Crisis. The eight West African countries analysed are Senegal, Mauritania, Mali, Burkina Faso, Niger, Ghana and Nigeria.
  • The levels of climate finance reported by global donors in 2019 (US$2.5 billion) represent only 12.7 percent of the average annual financial needs for external climate finance expressed by West African countries in their nationally determined contributions (NDCs) (covering the period 2021-2030). However, when considering Climate-specific net assistance (CSNA), current public funding that can be considered relevant for climate action would fall to 7.1 percent of average annual needs between 2021 and 2030, representing an alarming climate finance gap of 92.9 percent. The CSNA is a method of calculating climate finance developed by Oxfam, designed to be more equitable than the tools currently used by donors. The CSNA estimate includes 100 percent grants and grant equivalent of loans, guarantees and other debt instruments.
  • Oxfam’s estimate of net climate-specific aid is based on climate-related development finance as documented by the OECD.
  • See the Aggregate trends of climate finance provided and mobilized by developed countries in 2013-2020 against the 100 billion annual target, OECD, 2022.
  • Follow the caravans for the climate in Africa that will crisscross 23 African countries (Senegal, Benin, Niger, Ghana, Nigeria, Mali, Burkina Faso, Chad, Kenya, Uganda, Ethiopia, Ivory Coast, DRC, Gambia, Guinea, Malawi, Mauritania, Mozambique, South Africa, South Sudan, Togo, Zambia, Zimbabwe and Somalia) and will converge in Sharm el Sheikh, Egypt, at the time of the world climate conference (COP 27) from November 7 to 18, 2022. These caravans are a catalyst for the demands of African populations -especially youth and women- on climate finance (loss and damage, adaptation, and mitigation). They are organized by civil society organisations such as Young Volunteers for the Environment (YVE), CIDSE – International family of Catholic social justice organizations and a hundred others, with the support of Oxfam.
  • According to Government Spending Watch, in Ghana in 2019, total public debt service (external and domestic) reached 75 percent of government revenue, with domestic debt accounting for two-thirds.
  • The Notre Dame Global Adaptation Initiative (ND-GAIN) index assesses a country’s vulnerability to climate disruption and its ability to mobilise investment. Chad is ranked 182nd out of 182 countries.
  • While some loans are concessional, Oxfam is even more concerned by the high prevalence of non-concessional finance among some donors, especially the AfDB (US$454m; 43 percent of its total), United States (US$308m; 39 percent of total), the GCF (US$229m; 73 percent of total), France (US$167m; 13 percent of total), and the EIB (US$137m; 68 percent of total).
  • The newly released report by World Bank Country Climate and Development Report (CCDR) for the G5 Sahel region estimates that up to 13.5 million people across the Sahel could fall into poverty due to climate change-related shocks by 2050 if urgent climate adaptation measures are not taken.
  • 14 out of 16 West African countries plan to reduce their national budgets by a total of US$69.8 billion between 2022 and 2026 due to pressure from the International Monetary Fund (IMF) through its COVID-19 loans., based on the World Economic Outlook Database of the IMF and Oxfam’s analysis Adding Fuel to Fire: how IMF’s demands for austerity will drive up inequality worldwide.
  • According to calculations based on World Bank databases, an individual living in West Africa emits only 0.43 tons of CO2 per year. In comparison, a U.S. citizen emits 15.2 tons, with the global average being 4.5 tons.
  • Oxfam’s report HUNGER IN A HEATING WORLD: How the climate crisis is fuelling hunger in an already hungry world shows that climate change is deepening hunger in 10 of the world’s worst climate hotspots, including Burkina Faso and Niger. For food security projections, see the Food Security and Nutrition Working Group (FSNWG) estimates.
  • African nations meeting in Cairo from 7 to 9 September call for climate change funding ahead of COP27.

Extreme hunger has more than doubled in 10 of the world’s worst climate hotspots over past six years

Less than 18 days of fossil fuel companies’ profits would cover the entire UN humanitarian appeal for 2022

Ten of the world’s worst climate hotspots – those with the highest number of UN appeals driven by extreme weather events – have suffered a 123 percent rise in acute hunger over just the past six years, according to an Oxfam report published today.

Gabriela Bucher, Oxfam International Executive Director, said: “Climate change is no longer a ticking bomb, it is exploding before our eyes. It is making extreme weather such as droughts, cyclones, and floods – which have increased five-fold over the past 50 years – more frequent and more deadly.”

The brief – Hunger in a heating world– found that those 10 climate hotspots – Somalia, Haiti, Djibouti, Kenya, Niger, Afghanistan, Guatemala, Madagascar, Burkina Faso, and Zimbabwe – have repeatedly been battered by extreme weather over the last two decades. Today, 48 million people across those countries suffer acute hunger (up from 21 million in 2016), and 18 million people of them are on the brink of starvation.

“For millions of people already pummelled down by ongoing conflict, widening inequalities, and economic crises, repeated climate shocks are becoming a backbreaker. The onslaught of climate disasters is now outpacing poor people’s ability to cope, pushing them deeper into severe hunger,” said Bucher.

For example:

  • Somalia is facing its worst drought on record, and famine is expected to unfold in two of its districts: Baidoa and Burhakaba. One million people have been forced to flee their homes due to the drought. The country ranks 172nd out of 182 countries in terms of its readiness to cope with climate change.
  • In Kenya, the current drought has killed nearly 2.5 million livestock and left 2.4 million people hungry, including hundreds of thousands of children severely malnourished.
  • In Niger, 6 million people are facing acute hunger today (up 767 percent from 2016). Cereal production has crashed by nearly 40 percent, as frequent climatic shocks on top of ongoing conflict have made harvesting increasingly difficult. Production of staple foods such as millet and sorghum could plummet even further by 25 percent if global warming surpasses 2°C.
  • Burkina Faso has seen a staggering 1350 percent rise in hunger since 2016, with more than 3.4 million people in extreme hunger as of June 2022 due to armed conflict and worsening desertification of crop and pastoral lands. Global warming above 2°C would likely decrease cereal yields like millet and sorghum by 15–25 percent.
  • In Guatemala, a severe drought has contributed to the loss of close to 80 percent of the maize harvest and devastated coffee plantations.

“We spent almost eight days with hardly any food,” says Mariana López, a mother living in Naranjo in Guatemala’s Dry Corridor. Persistent drought forced her to sell her land.

Climate-fuelled hunger is a stark demonstration of global inequality. Countries that are least responsible for the climate crisis are suffering most from its impact and are also the least resourced to cope with it. Collectively responsible for just 0.13 per cent of global carbon emissions, the 10 climate hotspots sit in the bottom third of countries least ready for climate change.

In contrast, polluting industrialized nations such as those of the G20 – which control 80 percent of the world’s economy – are together responsible for over three-quarters of the world’s carbon emissions.

Leaders of these nations continue to support mega-rich polluting companies that are often big supporters of their political campaigns. Fossil fuel companies’ daily profits have averaged US$2.8 billion over the last 50 years. Less than 18 days of those profits would fund the entire UN humanitarian appeal for 2022 of US$49 billion.

Important policy changes are equally needed to address the double crisis of climate and hunger. Unless massive and immediate action is taken, hunger will continue to spiral.

“Ahead of UN General Assembly meetings this week, and COP 27 in November, leaders especially of rich polluting countries must live up to their promises to cut emissions. They must pay for adaptation measures and loss-and-damage in low-income countries, as well as immediately inject lifesaving funds to meet the UN appeal to respond to the most impacted countries.

“We cannot fix the climate crisis without fixing the systemic inequalities in our food and energy systems. Increasing taxation on super polluters could easily cover the cost. Just 1% of the fossil fuel companies’ average annual profit would generate US$10 billion, enough to cover most of the shortfall in funding the UN humanitarian food security appeal,” Bucher said.

Cancelling debt can also help governments free up resources to invest in climate mitigation.

“Rich and most polluting nations have a moral responsibility to compensate low-income countries most impacted by the climate crisis. This is an ethical obligation, not charity,” said Bucher. 

Notes

Download Oxfam report Hunger in a Heating World.

  • The FSIN began producing the Global Reports on Food Crises in 2017. Sum of the population in IPC3+ food insecurity in the ten countries in 2016 (See GRFC 2017, p. 21) was 21.3 million and in 2021 (See GRFC 2022, pp. 30 – 33) was 47.5. The percent rise is therefore 123 percent.
  • The calculations of those facing starvation in the 10 countries is based on the total number of people at IPC 4 level of food insecurity and above in 2021, according to the GRFC 2022, see Understanding IPC classification
  • The 10 worst climate hotspots were calculated looking at countries with the highest number of extreme weather-related UN appeals since 2000, where climate was classified as a “major contributor” to these appeals.  Source: Oxfam’s “Footing the Bill” report May 2022.
  • The 10 countries had the highest number of appeals linked to extreme weather, where climate was a major contributor to the appeal, according to the methodology outlined in the Oxfam (2022) Technical Note UN Humanitarian Appeals linked to Extreme Weather, 2000-2021.
  • The figure on fivefold increase in climate disasters is according to the World Meteorological Organization (WMO) Atlas of Mortality and Economic Losses from Weather, Climate and Water Extremes (1970–2019) (WMO-No. 1267), Geneva.
  • The sum of cumulative carbon emissions of the 10 climate hotspots for 2020 is 0.002 trillion tons of carbon – that is 0.13 percent of the world emissions (1.69 trillion tons of carbon) in same year. Source Our World in Data.
  • The sum of cumulative carbon emissions of the G20 countries for 2020 is 1.299570755 trillion tons of carbon, which is 76.60 percent of global carbon emissions (1.696524177 trillion tons). Source Our World in Data.
  • The rank of 10 climate hotspots is 34 percent according to calculations of percentiles of the Notre Dame Global Adaptation Initiative (ND-GAIN) index scores of the 10 climate hotspots. ND-GAIN scores for 2020 retrieved from the ND-GAIN website.
  • For the fossil fuel industry’s daily average of US$2.8 billion in profits over the last 50 years, which is also an annual average of US$1.022 trillion, we used this 2022 article from the Guardian: Revealed: oil sector’s ‘staggering’ US$3bn-a-day profits for last 50 years. Based on the daily average, we calculated that less than 18 days of company profits would cover the full UN global humanitarian appeal for 2022 of US$48.82 billion. We used the annual average of US$1 trillion to calculate the returns from an extra 1% tax on fossil fuel profits (US$10 billion). The Guardian (2022). Revealed: oil sector’s ‘staggering’ US$3bn-a-day profits for last 50 years.
  • UN humanitarian appeal for 2022 is found at https://fts.unocha.org/appeals/overview/2022, last visited 30 August 2022. The food security portion of the appeal is US$15.9 billion, of which US$10.4 billion is unfunded as of 8 September 2022.

Footing the Bill Report

800 percent increase in UN appeal needs for extreme weather-related emergencies – new Oxfam research.

The amount of money needed for UN humanitarian appeals involving extreme weather events like floods or drought is now eight times higher than 20 years ago — and donors are failing to keep up, reveals a new Oxfam brief today. For every US$2 needed for UN weather-related appeals, donor countries are only providing US$1.

Average annual extreme weather-related humanitarian funding appeals for 2000-2002 were at least US$1.6 billion and rose to an average US$15.5 billion in 2019-2021, an 819 percent increase.

Rich countries responsible for most of today’s climate change impacts have met only an estimated 54 percent of these appeals since 2017, leaving a shortfall of up to US$33 billion.

The countries with the most recurring appeals against extreme weather crises — over ten each — include Afghanistan, Burkina Faso, Burundi, Chad, Democratic Republic of Congo, Haiti, Kenya, Niger, Somalia, South Sudan and Zimbabwe.

The report, Footing the Bill, says that the increasing frequency and intensity of extreme weather events due to climate change is putting more pressure on an already over-stretched and underfunded humanitarian system. The costs of the destruction from these storms, droughts and floods are also increasing inequality; people in poorer communities and low-income countries are the worst hit yet they lack the systems and funding that wealthier countries have to cope with the effects. The richest one percent of people on Earth are emitting twice as much carbon pollution as the poorest half of humanity.

The UN appeals focus on the most urgent humanitarian needs, but that barely scratches the surface of the real costs in loss and damage that climate change is now wreaking on countries’ economies.

The economic cost of extreme weather events in 2021 alone was estimated to be US$329 billion globally, the third highest year on record. This is nearly double the total aid given by rich nations to the developing world that year.

The costs of loss and damage to low- and middle-income countries — for instance, the money needed to rebuild homes and hospitals or provide shelter, food and emergency cash transfers after a cyclone — could reach between US$290 billion and US$580 billion a year by 2030. This does not account for non-economic losses such as the loss of life, cultures and ways of living, and biodiversity.

UN appeals represent just a small part of the costs of climate disasters for people who are especially vulnerable and they only reach a fraction of the people who are suffering. Oxfam’s research shows that UN appeals cover only about 474 million of the estimated 3.9 billion people in low- and middle-income countries affected by extreme weather-related disasters since 2000, equivalent to one in eight people.

“Human activity has created a world 1.1˚C warmer than pre-industrial levels and we are now suffering the consequences. More alarming still, we will overshoot the 1.5˚C safety threshold on current projections. The cost of climate destruction will keep rising and our failure now to cut emissions will have catastrophic consequences for humanity. We can’t ignore the huge economic and non-economic losses and damages that underlie this picture — the loss of life, homes, schools, jobs, culture, land, Indigenous and local knowledge, and biodiversity,” said Oxfam Aotearoa Climate Campaign Lead Alex Johnston.

“This is the climate chaos we have long been warning about. Many countries that are being hardest-hit by climate change are already facing crises including conflict, food inflation, and the economic impact of the COVID-19 pandemic. This is leading to rapidly rising inequality, mass displacement, hunger and poverty,” said Johnston.

Humanitarian disasters affect men differently than women, who face long-standing inequalities that undermine their ability to cope. Women’s rights and progress towards gender equity are threatened with every disaster. The UNDP estimates that 80 percent of people being displaced by climate change are women.

“Poor countries cannot be expected to foot the bill, and increasing aid — while helpful — is not alone the answer. Paying the cost of climate-driven loss and damages should be on the basis of responsibility — not charity. Rich countries, rich people and big corporations most responsible for causing climate change must pay for the harm they are causing,” said Johnston.

Rich and industrialised countries have contributed around 92 percent of excess historical emissions and 37 percent of current emissions. Africa’s current emissions stand at just 4 percent; The Pacific Islands account for only 0.03 percent of global greenhouse gas emissions.

Kenya, Somalia, South Sudan and Ethiopia — where more than 24.4 million people now face severe levels of hunger and food insecurity — are together responsible for just 0.1 percent of current global emissions.

Rich industrialised nations have stymied loss and damage finance negotiations for years. At COP26 in Glasgow, they rejected developing countries’ calls for a new finance facility to address loss and damage and instead agreed to a three-year ‘Glasgow Dialogue’ to discuss future arrangements. “This just added insult to injury,” Johnston said.

Ahead of 56th sessions of the UNFCCC Subsidiary Body for Implementation (SBI) in Germany, which includes the first ‘Glasgow Dialogue’ on loss and damage since COP26, Oxfam urges:

  • Rich country governments like Aotearoa New Zealand to pledge bilateral finance to address loss and damage, in addition to existing climate finance and ODA commitments.
  • All governments to agree to establish and fund a finance facility for loss and damage at COP27, with annual contributions based on responsibility for causing climate change and capacity to pay.
  • All governments to agree to make loss and damage a core element of the UNFCCC’s Gender Action Plan.

 

Notes

Photos and video from Burkina Faso are available for download.

Download Oxfam’s brief Footing the Bill and our methodology note.

See also Oxfam Aotearoa and Oxfam Australia’s 2021 report titled Breaking Through Red Lines which outlines the loss and damage implications across the Pacific, and also includes loss and damage Māori communities within Aotearoa are experiencing due to climate destruction. The Pacific Islands is responsible for just 0.03 percent of global greenhouse gas emissions.

The countries with the most recurring appeals linked to extreme weather (Afghanistan, Burkina Faso, Burundi, Democratic Republic of Congo, Haiti, Kenya, Niger, Somalia, South Sudan, Uganda, Chad, Sudan and Zimbabwe) account for 1.4 percent of global emissions.

According to Aon, the total economic cost of extreme weather events in 2021 is estimated at US$329 billion globally, the third-highest year on record, behind 2017 and 2005.

Recent data from Oxfam shows that the wealthiest 1 percent of humanity are responsible for twice as many emissions as the poorest 50 percent, and that by 2030, their carbon footprints are in fact set to be 30 times greater than the level compatible with the 1.5°C goal of the Paris Agreement.

Rich nations provided US$178.9 billion in official development assistance (ODA) in 2021. This is equivalent to 0.33 percent of donors’ combined gross national income (GNI) and still below the UN target of 0.7 percent ODA to GNI.

According to estimations by Markandya and González-Eguino, the estimated costs of loss and damage by 2030 range from US$290 billion to US$580 billion, and according to Climate Analytics from US$400 to US$431 billion.

One person is likely dying of hunger every 48 seconds in drought-ravaged Ethiopia, Kenya and Somalia.

Scotland to significantly increase its Climate Justice Fund

Welcoming the news that Scotland will significantly increase its Climate Justice Fund, Jamie Livingstone, Head of Oxfam Scotland, said:

“This announcement from the First Minister has hugely raised the stakes as the COP26 talks enter their final few hours: sending a powerful message to the leaders of other rich nations that it’s simply unconscionable to leave poor countries picking up the tab for a climate crisis they did least to cause.

“Other governments must now step up and follow Scotland’s lead by making substantial new financial commitments to developing countries, where people are already losing their lives, homes and livelihoods to climate change.”

 

Notes to Editor

  • Read the full announcement by the Scottish Government here: https://www.gov.scot/news/scotland-to-boost-climate-funding/
  • The Scottish Government had previously announced it would boost its Climate Justice Fund to £24 million over the life of the current Parliament. It will now increase the Fund by a further £12 million.
  • Last week, Scotland became the first rich nation to create a dedicated fund for countries experiencing the irreversible impacts of climate change. This pioneering ‘loss and damage’ fund, set within the wider Climate Justice Fund, was originally set at £1m. Today’s announcement sees loss and damage funding doubled to £2 million.