COP27 begins in Egypt next month, and "loss and damage” is set to be a central issue. The term refers to the fact that the effects of climate change fall disproportionately on low-income countries. Even though many have recently chosen to follow the path set by the world’s richest countries -- industrialization using the dirtiest forms of energy -- these countries have suffered the most, despite emitting less historically. The term has been in use since 1991, when the small island nation Vanuatu submitted a proposal to the UN for a plan to compensate small island states for the damages incurred by sea level rise.

Historically, rich countries have been reluctant to take charge on loss and damage -- but at COP27, that may be about to change. Countries have begun to organize around creating a practical plan for climate reparations. The Caribbean nations, for example, plan to work together to push for a loss and damage response fund at the conference.

Wael Aboulmagd, special representative to the COP27 president, also says loss and damage will take center stage. "We need to find a practical solution that accommodates the various concerns and it's up to us as the incoming COP presidency, to sort of navigate and finesse this process. We are inching closer," Aboulmagd told Reuters.

Why This Matters

83% of all disasters in the last decade were climate-related events, affecting 1.7 billion people and killing 410,000. The world’s poorest countries are bearing the bulk of the consequences -- natural disasters caused 2 million deaths worldwide between 1970 and 2019, with more than 90% in developing countries. Storms intensified by climate change are projected to displace 200 million people over the next 20 years and by the year 2100, extreme heat events will make parts of Asia and Africa uninhabitable for up to 600 million people. A refugee crisis at this scale threatens sociopolitical stability worldwide.

Climate change is contributing to hunger crises, as well. 345 million people are facing food insecurity across the world as a result of droughts and flooding. In Kenya, 85% of the nation’s livestock has died over the past two years alone, leaving residents hungry and farmers without income.

Rich countries responsible for the majority of history’s global emissions will find greater pressure than ever at COP27 to help countries prepare for the damage that’s irreversible, even as they focus on mitigating the worst to come.

Recovering from Disaster

Just this year, natural disasters intensified by climate change have wreaked havoc on many nations in the Global South. In Pakistan, for example, a devastating bout of flooding thrust the nation into crisis. Preliminary data suggest that up to 9 million people could be pushed into poverty. According to the World Bank, floods could cause the poverty rate to rise between 2.5% and 4%. Meanwhile, the UN states that at least 41% of Somalia’s population of nearly 16 million people will face acute food insecurity between now and December as a result of drought and inflation. A recent report shows that 54 countries -- which house over half of the world’s poorest people -- need immediate debt relief to survive the climate crisis.

Some rich countries have taken action. Denmark plans to give about $13 million to vulnerable countries suffering from natural disasters, marking the first time in UN history that a wealthy member state has committed to distributing reparations for climate change. Germany has also pledged $58.4 million to Pakistan to help the country recover from flooding.