Contributions and challenges of disaster risk financing as a response to climate change-induced losses and damages

Human-induced climate change will continue to cause losses and damages, with vulnerable developing countries and communities that have contributed least to the climate crisis bearing the brunt of its consequences. Loss and Damage is the third pillar of the international climate regime in the 2015 Paris Agreement, alongside mitigation and adaptation.

In order to play a well-targeted and effective role, it is important to understand the applications and limits of Disaster Risk Finance as a response to climate-induced losses and damages. This paper explores how DRF instruments are being framed and understood within the panorama of Loss and Damage policy and finance agendas, highlighting areas of contention and sensitivity.