European Capacity Building Initiative

Innovative Sources for Loss and Damage Funding Discussed at COP29 Side Event

At COP29, DanChurchAid, Oxford Climate Policy (OCP), and the International Peace Institute (IPI) hosted a side event titled “Innovative Sources for Loss and Damage Funding: Introducing the Climate Solidarity Alliance”.

Through presentations and a panel discussion, the event explored the role of climate solidarity levies as a potential solution for raising domestic funds and enhancing international collaboration. Participants emphasized the urgency of scaling up funding to address the growing impacts of climate change and encouraged countries to implement these levies and show solidarity with the most vulnerable communities. 

Professor Benito Müller, Managing Director, OCP, gave a virtual kick-off presentation titled Climate Solidarity Levies and Alliance – Walking the talk (for the video recording click here). The proposed Alliance aims to foster international collaboration and inspire countries to establish domestic Loss and Damage trust funds sourced, inter alia, by domestic solidarity levies tailored to specific national contexts. The idea is being considered by the Global Solidarity Levies Task Force, which was launched at COP28 by Kenya, France, and Barbados.

In his presentation, Dan Lund, Special Advisor to the Government of Fiji, discussed how Cyclone Winston, which in 2016 was the strongest cyclone to make landfall on record, was a turning point for Fiji. Following the immense destructions of Winston, Fiji set up the Climate Relocation of Communities Trust Fund in 2019. Since then, Fiji has been a key player in advancing the idea of solidarity levies for loss and damage.

“This is the time to act!” said Jean-Christophe Donnellier, France, and Co-Chair of the Board of the Fund for Responding to Loss and Damage. He emphasized the growing political momentum since the Task Force was established, while acknowledging the challenges of ensuring mechanisms do not harm social equity or national competitiveness.  

Yussuf Hussein, Climate Finance Lead, Executive Office of the President, Kenya, pointed to the Task Force as a platform to foster dialogue at the highest level. He emphasized the political momentum that the Task Force had gained since its launch at COP28. Looking ahead to 2025, Hussein said the coalition and Task Force will be presenting concrete initiatives and impact assessments.

Jens Fugl, Chef Advisor, Ministry of Foreign Affairs, Denmark, continued by underlining how proud Denmark is to be one of the newcomers in the Task Force. He acknowledged that Denmark is less clear on how to implement the levies but looked forward to exploring the next step: addressing emissions from international sectors like shipping and air travel.  

Lillian Chagas, Director for Climate, Ministry of Foreign Affairs, Brazil, reiterated the importance of developing and analysing new funding mechanisms. She underlined that innovative finance sources, such as solidarity levies, will be “one of the main subjects we will propose for COP30”.

Following the panel discussion, Toeolesulusulu Cedric Pose Salesa Schuster, Minister for Natural Resources, Land, and Environment, Samoa, coming from an island nation severely impacted by sea-level rise from climate change, made a heartfelt plea: “We are losing our land. Are you ready to place your money to really do something or are we going to wait another 10 years?” He also announced a new app, which will calculate the carbon footprint of travel to and from Samoa, and will result in the application of a carbon offsetting levy. The fund, which these levies will be paid into, will help pay for community relocation, building a sea wall, replanting mangroves, and other adaptation and loss and damage needs Samoans will face as climate change continues to pose an existential threat to the small island State.

The event concluded with a unified call for increased collaboration and innovative solutions, showcasing not only the potential of solidarity levies but also the power of partnerships to tackle one of the most pressing issues of our time.

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