By: Momodou Habib Bah, MPP in Climate Change, Universitas Islam Internasional Indonesia
In December last year, the UAE hosted the UNFCCC Conference of Parties 28, where members discussed and agreed to establish a new funding mechanism called the Loss and Damage Fund. This fund was established to help vulnerable countries recover from economic and non-economic losses caused by climate-related disasters. According to the UNFCCC, $661 million is currently pledged by 18 big polluter Nations and the European Commission towards the loss and damage fund.
The term “loss and damage” refers to the adverse effects caused by extreme weather events and slow-onset events, leading to various economic and non-economic damages such as the loss of lives and livelihoods, destruction of infrastructure, loss of properties and crops, and depletion of ecosystems.
Despite contributing less than 0.01% of global greenhouse gas emissions, the Gambia is one of the most vulnerable nations in the world. The country has experienced unprecedented frequency and intensity of extreme weather and slow-onset events such as recurrent floods, windstorms, droughts, heat waves, and sea-level rise. In 2011, the country went through its worst drought spell in history. A study by Touray & Jammeh (2015) revealed that the erratic rainfall in 2011 resulted in a 50% reduction in crop yield, and child malnutrition rose by 11.4% in rural Gambia, causing the government to declare a Crop Failure Emergency. The 2021 windstorm disaster was also very severe, while the 2-day flood in 2022 turned out to be the most devastating disaster, claiming 11 lives, displacing thousands of people, and contributing to significant economic challenges. The flood impact assessment reported estimated direct damages to buildings, contents, and agriculture worth about $82.8 million. Sea-level rise has also contributed to coastal erosion, loss of beaches, and saltwater intrusion around the coastal communities; impacting the vital sectors of Agriculture and Tourism in The Gambia. These extreme events further exacerbate the Gambia’s current challenges such as poverty, food insecurity, migration, and crime rates.
Although the Gambia government and its developing partners have made considerable efforts to address these challenges by investing in mitigation, adaptation, and resilience initiatives, yet country faces major constraints in reducing climate-related disasters due to limited capacity, poor technological advancement, and insufficient financial resources.
Another report by the United Nations Environment Program (UNEP) suggested an annual financial commitment between $250 billion and $387 billion will be required to address the impacts of climate change in vulnerable countries throughout this decade. Despite the availability of some funding from entities like the Green Climate Fund (GCF), Global Environment Facility (GEF), and Adaptation Fund (AF) however, funds are mainly meant to address adaptation and mitigation interventions. Meaning, these funds fail to capture loss and damage. Moreover, accessing these funds remains difficult for The Gambia and many other developing nations due to the complex requirements it involves, and the bureaucratic and lengthy processes it takes to secure funding. However, the establishment of the Loss and Damage Fund offers hope for these countries.
Many developing nations, particularly the Alliance of Small Island States (AOSIS) have expressed concerns regarding the World Bank serving as the fund’s host. Some of their concerns are due to the governance structure of the World Bank. Nevertheless, it is worth noting that the World Bank will only act as the interim host for four years.
The availability of the Loss and Damage Fund would enable The Gambia to address both economic and non-economic losses, hence the Gambia can work towards building a more sustainable and resilient future for its citizens. The funds could be invested in rebuilding infrastructure there were damaged as a result of climate change, restoring livelihoods, rehabilitating the ecosystem, and implementing adaptive measures to reduce the severity associated with climate-induced disasters. In addition, the country could use the funds to promote climate-smart agriculture, encourage community-based adaptation, improve coastal resilience, and compensate communities facing extreme events.
Moreover, the Gambia can utilize the Loss and Damage Fund and invest in disaster risk reduction, and early warning systems. Investing in DRR and Early Warning System technologies will allow the country to anticipate future events, prepare for them, and respond to possible climate risks. The fund would also improve climate information for government agencies, farmers, and other stakeholders by providing accurate data that may enable them to make informed decisions. This will enhance the country’s resilience and preparedness against climate-related disasters.
Finally, capacity building is key to climate resilience. The loss and damage fund will be an important resource for the country to strengthen its capacity in terms of planning and responding to climate-related risks and disasters. Training programs and knowledge-sharing mechanisms could enhance the Gambia’s resilience against climate change.
While this fund holds a great opportunity for the Gambia, it is important to emphasize that the Gambia still needs expertise in writing solid proposals to access the fund. Therefore, government staff should be well-trained to develop bankable projects to secure this funding. Also, after securing L&D funds, strong monitoring and evaluation measures must be implemented to track the progress of L&D projects. M&E will enhance accountability, and ensure the projects achieve their intended outputs. Henceforth, implementing the business unusual approach as suggested by the LIFE-AR program will be quite useful. Aligning the L&D funds with the LIFE-AR program will ensure at least 70% of it goes to the beneficiaries. Furthermore, we must not forget to highlight the importance of effective interdepartmental collaborations between MDAs. Interdepartmental coordination could help to avoid duplication of efforts while implementing L&D programs. That way we can ensure that the loss and damage funds reach the communities that bear the brunt of climate-induced disasters.
In conclusion, the establishment of the Loss and Damage financial mechanisms offers a promising opportunity for The Gambia to address the devastating impacts of extreme weather events. Through investment in infrastructure, capacity building, Disaster Risk Reduction, and Early Warning Systems, the Gambia can strengthen its resilience, mitigate the effects of climate-induced disasters, and pave the way for a more sustainable future. Moreover, a robust M&E framework and solid interdepartmental collaboration could play a significant role in making sure that the fund reaches the vulnerable.
