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Begin New Search Topic Loss and Damage (L&D) Author Michael Franczak

1. Can the World Bank Deliver on Climate Change? Testing the Evolution Roadmap through Loss and Damage

Author:
Michael Franczak
Publication Date:
04-2024
Content Type:
Working Paper
Institution:
International Peace Institute (IPI)
Abstract:
The establishment of a new Loss and Damage Fund and Funding Arrangements at COP27 and the Fund’s operationalization and initial capitalization at COP28 were milestones in the UN climate regime. The World Bank engaged in the Transitional Committee (TC) process as a potential host and trustee for the Fund, a member of a new “High-Level Dialogue,” and a direct provider of loss and damage (L&D) support. The implementation of the Fund and Funding Arrangements—the mosaic—is the first big test of the World Bank’s commitment to evolving its policies, practices, and relationships. This paper discusses the World Bank’s engagement with loss and damage, including the context of broader reforms aiming to modernize the Bank, such as the Bank’s Evolution Roadmap, which identifies three guiding elements for the Bank’s evolution: a new mission and vision, a new playbook, and new resources. One of the key components of the Bank’s evolution is the introduction of climate-resilient debt clauses (CRDCs) or “pause clauses.” Pause clauses feature prominently in recent initiatives to reform the international financial architecture, such as Bridgetown 2.0, the Africa Climate Summit’s Nairobi Declaration, and the Vulnerable Twenty Group’s (V20) Accra-Marrakech Agenda. The paper also discusses the debate over the World Bank’s hosting of the Fund and the set of conditions and safeguards, determined by developing countries, that the Bank would have to meet in order to host the Fund. Finally, the paper discusses priority actions for the High-Level Dialogue, including resource mobilization, institutional protocols, and the losses and damages of the future.
Topic:
Climate Change, World Bank, Loss and Damage (L&D), and Conference of the Parties (COP)
Political Geography:
Global Focus

2. Addressing Loss and Damage through the Mosaic: A Simulation from the Delta Republic

Author:
Michael Franczak and Michael Weisberg
Publication Date:
10-2023
Content Type:
Policy Brief
Institution:
International Peace Institute (IPI)
Abstract:
The 2023 UN Climate Change Conference (COP28) takes place amid change and contestation in the global political economy. High prices for food and fuel are still a problem, particularly for countries that are net importers of both. Sovereign debt also remains a challenge due to rising borrowing costs and inaction from major creditors. Meanwhile, the adverse impacts of climate change are rising in scale and intensity and falling disproportionately on the countries least equipped to address them. In this context, parties to the 2022 Climate Change Conference (COP27) agreed to establish new funding arrangements for addressing loss and damage, including a new Loss and Damage Fund (LDF). The proposal for a fund and funding arrangements coordinated by a Loss and Damage Impact Council presents an opportunity to assemble the mosaic of solutions imagined at COP27. The problem is that we still lack a clear and shared picture of what it means to fully address loss and damage: what needs doing, who needs to do it, and how and when it needs to be done. This paper is an attempt to imagine a well-functioning and coordinated system—a mosaic—with functions, institutions, and results that deliver stability in the face of adverse climate change impacts. First, the paper presents the scenario of the fictional Delta Republic, which is suffering a slow-onset crisis compounded by repeated extreme events. It then identifies elements of an ambitious but practical response from the system we have, including actions, modalities, actors, and timing. The paper identifies gaps in the response and obstacles to the actions envisaged in the scenario, including but not limited to finance and financial arrangements. In its conclusion, the paper uses insights gained through the scenario to propose: (1) the purpose of the funding arrangements for extreme and slow-onset events, (2) an initial list of members for a Loss and Damage Impact Council, and (3) potential actions and interventions for the Loss and Damage Fund. Finally, the paper emphasizes the critical nature of a country- or demand-driven approach to the support provided by the LDF, including the use of accredited entities for implementation.
Topic:
Climate Change, Political Economy, Simulation, Loss and Damage (L&D), and Conference of the Parties (COP)
Political Geography:
Global Focus