Stimulus
When the international community meets to bargain over the climate crisis, two very different demands sit on the table. The first is mitigation finance, money channelled to help developing states cut their own future emissions through renewable energy and cleaner industry. The second is loss and damage compensation, money that acknowledges harms already suffered from storms, flooding and drought that can no longer be prevented or adapted to. At COP27 in Egypt in 2022, states agreed in principle to create a dedicated Loss and Damage Fund, and at COP28 in the United Arab Emirates in 2023 they operationalised it with initial pledges.
The distinction matters politically because it reframes who owes what to whom. Mitigation finance treats climate action as a shared investment in a common future, while loss and damage frames the issue as historical responsibility for harm already inflicted. The Alliance of Small Island States (AOSIS), a coalition of low-lying nations facing existential threat, has argued for decades that pledges to cut future emissions do nothing for communities already losing their coastlines. Wealthier states have often resisted the language of compensation, fearing it implies unbounded legal liability.
Adapted from "The Price of Harm Already Done: Climate Finance After COP28" by Dr Amara Okonjo, Global Environmental Governance Review (2024).
(a) Using at least two examples from the stimulus, mitigation finance with loss and damage compensation
(b) With explicit reference to a global political challenge from one of your researched case studies, how an alliance of vulnerable states has been used to advance a climate finance demand within a multilateral negotiating process