What Climate Finance Means for the Global South in the Run-up to COP26

What left many grumbling at the 26th meeting of the Conference of Parties (COP26) held in November in Glasgow was rich countries like the United States and those in the European Union striking down the Glasgow Loss and Damage Facility, a body created to address how to compensate developing countries for climate change-related losses and damages. Wealthy countries have been found to be most responsible for causing the climate crisis and face litigation as well as ensuing liabilities and payouts. 

But the demand to recognize loss and damage remains alive. A good indication being many climate-vulnerable developing countries have referenced loss and damage in their Nationally Determined Contributions (NDCs). Under the 2015 Paris Agreement, countries are required to submit NDCs to detail their national action to address global climate change, including steps to adapt to a changing climate and the form of financial assistance needed to undertake such action. 

Small-Income and Developing Countries Hard Hit

A report published in October, 2021 found one-third of the 250 NDCs that were analyzed explicitly mentioned loss and damage. Most were from small-island developing states and least developed countries in the Asia-Pacific, Latin America and the Caribbean. The report was supported by the European Research Council’s Politics of Climate Change Loss and Damage (CCLAD) project. 

“NDCs are political documents and not just technical submissions [under the Paris Agreement],” said Elisa Calliari, a co-author of the report. 

Developed countries tend to focus on mitigation action, like the deployment of renewable energy. But that hasn’t been the case for the majority of the world’s states.

“Developing countries have pushed hard for the inclusion of adaptation in NDCs because, for them, this is more of a priority than mitigation,” Calliari pointed out. “So you can see the politics.”

For people living in an island nation like Sri Lanka, “key loss and damage impacts are felt in food systems and other vulnerable sectors, like the coastal and marine sector and water resources. These impacts have already resulted in migration interlinked with or induced by climate change among vulnerable communities,” said Vositha Wijenayake, executive director of the SLYCAN Trust, a non-profit think tank working in Asia, Africa and Europe. Its work focuses on climate change, biodiversity and ecosystems, sustainable development, and social justice. 

Sri Lanka is classified as a lower-middle income/developing country. Given that it is also an island, its exposure to climate-related risks is high. These two factors make it extremely vulnerable to climate impacts and the ability to withstand them.

So, Wijenayake added, it is important for countries most vulnerable to climate change that loss and damage is a “key component” in addressing climate change processes, both negotiations and climate action. And this is why Sri Lanka was among the first countries to have a separate section allocated to loss and damage commitments included in its first NDCs submitted in September 2016. Building on this, the updated NDC of Sri Lanka submitted last July includes a separate section on loss and damage.

Interestingly, the report says upper-income countries like Costa Rica, Chile and Uruguay also have cited loss and damage in their NDCs. 

And outside of NDCs, many developing countries have explicitly stated loss- and damage-related demands. For instance, consider India’s environment ministry laying out ahead of COP26, “There should be a compensation for expenses incurred, and it should be borne by developed nations.”

How to Fund Loss and Damage

A question that usually rears its head with respect to addressing loss and damage is how to “operationalize” it, or what processes and institutions could be set up at the global and national levels to address loss and damage. 

“[One way would be] to look at NDCs for a bottom-up approach to understand how countries themselves are looking at loss and damage,” Calliari said. 

Of the NDCs that explicitly mention loss and damage, around half specify loss- and damage-related responses and initiatives like data gathering, analysis and assessment, and institutional capacities to address loss and damage. For example, Sri Lanka’s NDC has a whole section on loss and damage. It mentions strengthening its weather and climate forecasting systems, plus improving data management to record loss and damage. Meanwhile, Honduras’ NDC puts forth a “gender-responsive agricultural insurance mechanism for loss and damage.”

Wijenayake also stressed “inclusive and participatory processes,” in which the voices of those vulnerable to climate change are taken into account in the national and international policy-making processes. As is “ground-level implementation,” she added. 

And so, country-specific NDCs could potentially be a good starting point to determine how to put mechanisms in place to address loss and damage on a global scale. 

Getting Polluting Countries to Pay

The other gap that exists today is how finance can be mobilized to fund efforts that compensate for climate change-related loss and damage. A recent study by the Stockholm Environment Institute offers potential solutions. 

The researchers propose finance should be provided based on the following:

• Solidarity,
• “polluter pays” principle that is based on “historical responsibility,” and 
• the established notion of “common but differentiated responsibilities and respective capabilities” (or CBDR-RC, for short) under the United Nations Framework Convention on Climate Change (UNFCCC). 

CBDR-RC means that while climate change is a shared concern, rich countries with a history of emitting carbon—like the United States and those in Europe—have a greater responsibility to take climate action than the poorer countries.  

The “polluter pays” principle has only been used to hold fossil fuel companies accountable for environmental destruction. It implies more strict liabilities than “historical responsibilities,” which outlines broad principles based on past emissions. 

The authors stress a combined approach that deploys the principles of solidarity, polluter pays and historical responsibility, as well as using the framework of CBDR-RC, to finance loss and damage. 

A strictly liability-based approach would be “politically infeasible and communities cannot wait for years to prove the liability,” said Zoha Shawoo, an associate scientist at the Stockholm Environment Institute as well as one of the authors of the SEI report. 

The research team also looked at methods of recovery and rehabilitation that communities would need after financing efforts to cover losses and damages. Those efforts can include planning the relocation of communities, assisting with migration and providing affected people with alternative livelihoods. Here, too, NDCs could help with granular details like national-level entities and processes that could assist local communities with issues like displacement and loss of livelihood. 

Rishika Pardikar is a freelance journalist in Bangalore, India. She had reported for Toward Freedom from COP26 in Glasgow.

The practice of “thengapalli” has helped one forest in India.

Groups of 4 or 5 women have taken turns carrying wooden sticks to guard their community forest against theft and poaching. This practice has helped the once-devastated forest in the state of Odisha to regenerate.

“Nature is the source of identity, culture, language, tradition and livelihood for an Indigenous community and, thus, they have been protecting it,” said Archana Soreng, an Indigenous activist and researcher from Odisha. “Unlike how the contemporary development framework sees nature as a commercial entity.”

A new report more than 20 Asian Indigenous organizations have authored warns Western conservation models governments and organizations worldwide have adopted threaten the rights of Indigenous communities and local people.

This report, “Reconciling Conservation and Global Biodiversity Goals with Community Land Rights in Asia,” comes ahead of the United Nations Biodiversity Conference. To be held next month in Kunming, China, the conference is expected to adopt the Post-2020 Global Biodiversity Conservation Framework (GBF), which includes placing under protection 30 percent of the world’s land and water by 2030.

Why Isn’t ‘30 By 30’ Enough?

Posang Dolma Sherpa said such spatial targets are simplistic and do not translate into actual progress.

“For many of the Indigenous peoples and local communities already safeguarding the planet’s natural resources and biodiversity without outside help, the catchphrase ‘30 by 30’ belies the many complex considerations required to ensure truly sustainable conservation,” said Sherpa, executive director of the Centre for Indigenous Peoples and Research and Development (CIPRED), based in Kathmandu, Nepal.

As an example, she explained that in Nepal, generations of Indigenous customary institutions and self-governance systems that contributed to sustainable management of biodiversity and ecosystem were ignored. Instead, new land and forest management processes were superimposed, causing injustices and marginalization that exacerbated the issues that were meant to be rectified.

“When countries gather in Kunming in April to finalize the post-2020 Biodiversity Framework, it is imperative that the draft targets are modified to explicitly recognize human rights-based approaches to conservation on a global scale,” she added.

Sherpa said this can be done by:

1. Changing Target 2 in the framework to include the appropriate territories of Indigenous Peoples and local communities and their right to Free, Prior and Informed Consent (FPIC);
2. changing Target 3 to include the appropriate territories of Indigenous peoples and local communities, the equitable governance of these territories and resources, and their appropriate legal recognition within the target;
3. including the “devolution of authority and broad-based alliances with Indigenous peoples and local communities” within the GBF’s enabling conditions, paragraph 17; and
4. ensuring a due diligence mechanism and an accountability process.

Living In Constant Fear of Evictions

A huge gap exists in the recognition and legal status of tenure rights. Between 1.65 billion to 1.87 billion Indigenous peoples and local communities live in important biodiversity conservation areas globally, but legally own only 10 percent of the lands they customarily manage.

Sherpa said for the GBF to achieve its goals for a better and harmonious future, it must support and initiate drastic transformations that facilitate environmental and social justice. “Failing to uphold international standards of human rights or erect due diligence mechanisms to ensure human rights are being implemented will only enable the continuation of the same processes that are destroying the environment and causing human rights violations at the same time.”

Already, several communities have lost access to local, ecological and cultural resources, and have undergone trauma due to eviction. In many areas, their rights are still not recognized. Even when legal rights are afforded, such as India’s 2006 Forest Rights Act, many of these rights are subverted. During the 2020 lockdown, land belonging to tribes in the states of Telangana and Odisha were reportedly grabbed under the pretext of afforestation.

Neither the forest departments of the Indian government nor the Odisha state responded to this reporter, as of press time. The Indian Ministry of Tribal Affairs also did not reply.

Prudhviraj Rupavath, researcher with New Delhi-based data research agency Land Conflict Watch, who contributed to the report, said many Indian states have neglected to implement the Forest Rights Act. “Awaiting legal titles for their cultivating land, indigenous people are constantly living with the fear of evictions.” He added that though Indigenous communities help protect and restore forests, Indian state governments are prioritizing displacing people rather than securing tenure rights.

Aside from being an Indigenous activist and researcher, Soreng is a member of the UN Secretary General’s Youth Advisory Group on Climate Change. She said when an Indigenous community is displaced, they lose their identity, culture, language, and traditional knowledge and practices of forest conservation. That makes not only the humans, but the ecosystem, vulnerable to the climate crisis.

Soreng added Indigenous communities have been using twigs to brush teeth, and building dining plates, mats, chairs, and small tables using leaves.

Moving Toward Collective Ownership

The increasing focus on commodity-driven development threatens one-quarter of Indigenous peoples’ land, according to the report.

“Due to a systemic lack of formal legal recognition, the lands customarily occupied and owned by Indigenous peoples and local communities are seen as ‘available’ or property of the government,” said Thomas Worsdell, editor of the report.

In India, several large areas are classified as wastelands although they customarily belong to tribal communities. This opens them to environmentally destructive industries and human rights abuses, he said.

“Examples are the coal sector in India and the fossil fuel industry, more broadly, agricultural expansion (e.g., palm oil), mining, renewable energy (hydroelectric dams and wind turbines) and even the carbon offsets market,” Worsdell told Toward Freedom. “These industries are expanding into the lands and territories of Indigenous peoples and local communities who do not have collective ownership.”

These threats on territories are often encouraged and even enabled by the state, he added. In Indonesia, the recent Omnibus bill was enacted to attract business investments, but weakened both environmental and human rights protections.

To prevent these threats, the report states governments should embrace human rights-based strategies, and recognize the land, forest, water, and territorial rights of Indigenous peoples and local communities.

Worsdell said supporting Indigenous and local movements is key to creating legal transformations at the national level that support capacity and funds. Capacity in this instance can include trainings, workshops, supporting knowledge sharing, participatory mapping, among other steps to ensure the human rights of Indigenous and local peoples are upheld.

‘Why Have We Lost What Was Ours?’

Indigenous and local community organizations are already providing solutions for human rights-based approaches. They have proposed laws and amendments, created the frameworks for nationally recognized Indigenous institutions and agencies, and are conducting research that proves the environmental benefits of human rights-based conservation.

For example, the Tsumba and Nubriba Indigenous groups in Nepal renewed in 2012 the practice of a Shagya (non-violence) customary institution to protect nature, biodiversity and their cultures. This practice involves the establishment of a committee made up of representatives from 10 villages to ensure no killing, hunting, harvesting of wild honey, forest fires, flesh trading, trapping and sale of animals, and trading of domestic animals take place during various timeframes.

Worsdell said, however, this practice lacks legal recognition, which is often the case in many Asian countries, where the legal climate does not favor human rights-based approaches to conservation.

“Governments must first recognize Indigenous identities, bring an immediate end to criminalizing and killing of Indigenous peoples and local communities defending their lands, and put in place a national accountability and reparation mechanism for past and present human rights violations,” Worsdell explained.

He said Indigenous peoples must have a seat at the decision-making table as leaders instead of as symbolic representations. He added governments must endorse and commit to the ‘Land Rights Standard,’ a set of emerging best practices for recognizing Indigenous peoples’ and local communities’ land and resource rights in landscape restoration, management, conservation, climate action, and development projects.

A song created by groups of Indigenous people aptly captures the essence of the report:

“…Nature was taken from Indigenous people again and again, betrayed, they lost their forest wealth. We had knowledge of the forest then, why have we lost the knowledge now. Indigenous people lived with freedom in the forests, today we are oppressed by the ruling class. We used to have everything, Now, why have we lost what was ours…”

Deepa Padmanaban is a Bangalore, India-based freelance journalist, who writes about the environment, conservation and climate change. She can be followed on Twitter at @deepa_padma.

Editor’s Note: The following is the writer’s opinion.

“More of us took our own lives after returning home than died in the battle.” -statement of U.S. armed forces veterans on U.S. war on Vietnam

In the analysis of all exploitative systems, it is obvious to see how the exploited are harmed. This is where most attention has been focused, and understandably so.

Nevertheless, it is also important to examine and understand what happens to the exploiters at the other end of the process of exploitation.

The reason is, invariably, in any process of exploitation, exploiters are also harmed in ways that are serious and significant, even though they may be less visible and obvious immediately. This is partly the reason why this aspect of exploitation is less recognized. If there is a better understanding and a wider recognition of how exploiters suffer in the process of exploitation, new openings can emerge to convince the more powerful regarding the futility of prolonging exploitative relations and systems.

For the sake of brevity, here we speak mostly in terms of only two ends of exploitation systems—the exploiters and the exploited. But we also can speak of two ends of systems of dominance—the dominators and the dominated. Or the two ends of systems of conquest—the conqueror and the conquered.

One indication of what happens to the exploiter or the conqueror is available in some statements of the veterans of U.S. armed forces. One of these statements, which described the immense cruelties and killings, said, “We know what Post Traumatic Stress Disorder looks like, feels like and tastes like because the ghosts of over 2 million men, women and children still haunt our dreams. More of us took our own lives after returning home than died in battle.”

A detailed account followed the life of a pilot whose napalm bombing had led to the burning of a Vietnamese girl, Kim Phuc. After returning home, this pilot kept looking at the picture of Kim in flames. This girl was roughly the same age as his son. “He could almost smell the child’s burning flesh.” The veteran had nightmares of screaming children pointing accusing fingers toward him. There was a breakdown in his family. He turned to alcohol. “He drank to put the bombing out of his mind, and the drinking made him more obsessed.”(Reader’s Digest, November 1997).

This is by no means an isolated case. Breakdowns in close relationships, substance abuse, domestic violence, self-violence and suicide attempts have been found to be very high among soldiers who return home after fighting highly unjust wars. More commonly, anyone who performs unjust and exploitative actions over a period of time is likely to be able to continue this only by giving up on the sensitivity needed for care, compassion and love. Hence, this person’s ability to fulfill close relationships based on this declines steadily, as also his ability to experience those forms of happiness associated with real love, caring relationships and compassion.

At a wider level, a group or society which seeks to enrich itself by plundering and exploiting others has to spread value systems that make their members insensitive to the sufferings of others. But in the process of making them insensitive, the foundation also is prepared for breakdown of internal social relations (including with the closest people), internal violence, self-violence and falsehoods. This can be seen in exploiter and conqueror societies as well as at individual levels, in the hollow lives of those who lead aggressions.

To give one example of such impacts, the example of Christopher Columbus may be cited. The extreme cruelties driven by the endless greed of this explorer are well-known. What kind of personality this turned him into is best revealed by a reputed doctor, Sigmundo Feliz, who attended to him in his final years:

“To be without roots, without a sense of home and place is one of the most serious, though one of the least emphasized, psychological disorders. This patient suffered from this to an unusual degree… This patient appears from all evidence to be someone who found it difficult, even in non-threatening circumstances, to tell the truth, a habit of delusion that at times turned into self-delusion.”

At the level of entire societies, those which lead by aggression toward others, culminating in wars, are often engaged in spreading falsehoods and self-delusions, media and education systems being two commonly used channels. The big lies cooked up to justify aggression for plunder or domination get transferred also to almost equally big lies cooked up to justify internal exploitation by big business interests. Hence, people are exposed to serious health hazards by big business interests; in some cases the toll in the longer term may be higher than that of even destructive wars. Therefore, not just at the level of individuals but also at the level of entire societies, exploiters also suffer in serious ways.

The aggression and weaponization abroad is also reflected in internal violence. The United States, for example, experienced:

• 1.2 million recorded violent incidents in 2019 (366 per 100,000 people), according to FBI data;
• Over 10 million arrests this year (not counting traffic violations), which comes out to 3,011 arrests for every 100,000 people;
• The highest number of prisoners per capita in the world;
• Seven people dying a violent death every hour; and
• 19,100 homicides and 47,500 suicides in 2019.

According to official U.S. data, this year 12 million people seriously thought about suicide, while 3.5 million planned a suicide attempt and 1.4 million attempted suicide. 

Among U.S. youth, suicide is the second highest cause of death. Plus, an unprecedented increasing trend of suicide attempts have been reported among U.S. youth during the last decade, and more pronounced among girls.

Some of this data points to a deep internal social crisis that can arise within an exploiter-and-conqueror society known for its invasion and aggression. Careful research is likely to reveal more links of aggression and internal distress. Such research should be used to convince more people about the futility of paths based on exploitation, dominance and conquest.

Bharat Dogra is Honorary Convener, Campaign to Save Earth Now. His recent books include Planet in Peril and Earth Beyond Boundaries.