However, the lack of structural funding for “loss and damage” in international climate policies prevents the implementation of responses that support populations affected by climate risks, whether through humanitarian assistance or social protection. Without a reliable and holistic funding mechanism, the most vulnerable countries will be pushed deeper into debt, fragility, and poverty every time they are hit by climate disasters for which they are not responsible.
To fill this climate policy gap, Caritas urges states to support the creation of a “loss and damage” financing mechanism alongside the operationalization of the Warsaw mechanism and the Santiago network. This mechanism should have an economic endowment sufficient to finance the recovery and rehabilitation of climate-related disasters. These funds should be distributed in a democratic and local manner, in the form of grants rather than loans.
Considering the movement of people in relation to climate change, Caritas also calls on states and the international community to ensure that issues of displacement, migration, and planned resettlement are taken into account and mainstreamed into many policy frameworks and actions.