Support for SIDS in climate change cases

New research from the Cambridge Institute for Sustainability Leadership (CISL)), with risk analysis from global insurance group Howden Group Holdings, demonstrates the transformative economic efficiency of risk-sharing systems to provide vulnerable countries with financial security from climate related disasters. The smallest and most vulnerable countries risk losing over 100% of their GDP from extreme climate shocks next year, according to the findings, which underlines the scale and severity of the risks faced by the Global South. Small Island Developing States (SIDS) and other vulnerable countries bear these overwhelming threats almost alone. This can be solved. The report, which models Loss and Damage (L&D) implementation, reveals these risks are insurable and proposes a solution using the power of (re)insurance and capital markets to dramatically scale up the impact of L&D funding. The modelling shows that the intolerable financial risks faced by this group of countries could be reduced to just 10% of GDP. The research outlines an action plan for L&D implementation across 100 less developed, climate vulnerable countries. It proposes leveraging donor funding to unlock vast sums from (re)insurance and capital markets to provide guaranteed financial protection to exposed communities now, and through to at least 2050.  https://lnkd.in/e-tX4AsP

I’ve written for Climate Home News on a new paper co-authored with Vikrant Panwar, PhD, Akarsh Arora and Matthew Bishop (Dr) on how the new loss and damage fund might best spend the scarce cash pledged so far – and how more money donated to the fund could be used to good effect. One recommendation: The loss and damage fund should use parametric triggers to pay out when climate disaster strikes small island developing states What’s a parametric trigger? This clever financial instrument has been used to good effect in the insurance industry, and can have a use in the climate finance context as well. International funds that deploy these instruments can ensure that when an extreme weather event reaches a measurable point of severity, identified vulnerable communities will automatically receive support to access food, water and basic services, when homes, crops and livelihoods are destroyed. The beneficiaries of such measures also need to be correctly identified – and sometimes that can mean helping people who aren’t poor by traditional income measures now, but are acutely vulnerable to falling into poverty due to climate related shocks. A study by ODI, published today found that 20 million people, about one-third of those living in the world’s small island developing nations, are in this category – at severe risk of climate change-induced poverty that would deprive them of life’s essentials. It will be vital that COP29 negotiations secure more money for the loss and damage fund, as part of broader efforts to determine the new quantified collective goal, but we also need to ensure funding is used as effectively as possible, targeted to the places and people that need it most. Read more: https://lnkd.in/duDKjDEK #COP29 #LossandDamage #ClimateChange #SIDS #CHOGM #SmallIslandDevelopingStates

The International Court of Justice has delivered a historic legal opinion that could redefine global accountability for climate inaction. The International Court of Justice (ICJ), the world’s highest court, has handed down a landmark advisory opinion declaring that states have a legal obligation to act on climate change and that failure to do so may amount to an internationally wrongful act. This is a seismic moment for international environmental law. The ICJ has made it clear: climate inaction is not just political negligence it could now be a legal liability, potentially opening the door for climate reparations from major emitters to vulnerable nations. 🔹 The court emphasised that: “The failure of a state to take appropriate action to protect the climate system … may constitute an internationally wrongful act.” 🔹 Consequences include: “Full reparations to injured states in the form of restitution, compensation and satisfaction.” This ruling amplifies the voice of Small Island States and climate-vulnerable nations, including Pacific countries like Papua New Guinea, in future climate negotiations. The global legal framework is catching up to the climate reality we face. This is not just an advisory opinion it’s a moral and legal compass for the world’s governments and climate policy architects. 🔗 Read the full article: https://lnkd.in/gCcigztx #ClimateJustice #ICJ #InternationalLaw #ClimateChange #PacificVoices #SIDS #PNG #ClimateResponsibility #LegalAccountability #Environment #Sustainability

The Official Development Assistance (ODA) list is typically based on several factors, primarily related to the country's level of economic development and its need for external financial assistance. SIDS often face unique challenges due to their small size and vulnerability to various factors like climate change, economic instability, and limited resources. Even if a specific SIDS is not on the ODA list, various resource constraints exist. A revised ODA criteria (vulnerability index) will better support SIDS in fighting climate change and could enhance their efforts in several ways. By prioritizing climate-related projects within ODA, SIDS could receive more targeted funding for initiatives such as renewable energy development, climate resilience building, and adaptation strategies. This could lead to increased capacity for SIDS to implement sustainable practices, reduce greenhouse gas emissions, and address the unique challenges they face due to their vulnerability to rising sea levels and extreme weather events.

History was made at The Hague. In an unprecedented advisory opinion, the International Court of Justice affirmed that nations have a legal obligation to act in line with the 1.5°C target of the Paris Agreement—and that those most responsible for climate change may be held liable for reparations. What began as a call to action from a group of Pacific island students has now become a turning point in international climate law. The ICJ’s ruling is not legally binding, but it arms vulnerable nations and climate advocates with powerful legal arguments to hold the largest historical emitters accountable. This is more than jurisprudence. It is a reminder that climate justice is not only a moral imperative—it is a legal one. And it signals that the global courtroom may become a far more decisive arena in the climate fight. An important read from Bloomberg 👇 #ClimateJustice #ICJ #BlueDiplomacy #PacificVoices #ClimateAction #SIDS #ESG #Sustainability #ParisAgreement #Reparations #COP30