This morning the New Zealand Government announced NZ$20m in finance specifically for climate change-induced loss and damage. This is a significant win for frontlines communities, small island states, and civil society organisations, who have been calling for loss and damage specific finance for too long.
Critically, however, the funds New Zealand has announced are merely a re-allocation of a portion of the $1.3b in climate finance the Government already announced late last year. Reallocating funding isn’t good enough - it must be new and additional.
This announcement comes as loss and damage finance makes it onto the UN climate change conference agenda for the first time, following significant efforts from Global South countries and civil society over many years.
The Pacific Islands Climate Action Network and New Zealand Climate Action Network reaffirm the call by Climate Action Network International for New Zealand to support the creation of a dedicated loss and damage finance facility at COP27, so that countries suffering unavoidable impacts of climate change will have access to the financial support they need.
Pacific Islands Climate Action Network - Lavetanalagi Seru, Regional Policy Coordinator
“The Pacific Islands Climate Action Network welcomes this announcement by the New Zealand Government to commit dedicated funding for loss and damage. This announcement sends a strong signal, responding to the decades of call from communities, civil society, and in particular Pacific small islands states, who are already living through an era of loss and damage.
“However, this funding announcement—similar to Scotland, Belgium, and Denmark—whilst welcomed and a step towards getting the process off the ground, is still only a drop in the ocean.
“We also need to ensure that future committed loss and damage funds are not being repurposed as adaptation finance, but that the funds are additional and dedicated specifically for loss and damage initiatives. The scale of loss and damage finance required is in the billions, and we need countries to also contribute their fair share to address mitigation, adaptation, and loss and damage.
“Loss and damage is about equity and justice, and this commitment is a step towards climate justice for people and communities who are on the frontlines of the climate crisis.”
Comments from NZCAN member organisations:
Pacific Climate Warriors New Zealand - Kalo Afeaki, Coordinator
“While the New Zealand Government’s recent announcement of a dedicated allocation of NZ$20 million to address loss and damage in developing countries is welcome, it is not explicitly earmarked for the Pacific where the finance is most needed and is not new funding.
“The lives and livelihoods of Pacific peoples continue to suffer irreparable damage caused by a climate crisis that we have contributed the least to. As a global north country, New Zealand has a responsibility to ensure that loss and damage funding is not only sufficient but is also accessible to the communities that most need it. This means New Zealand must actively push for loss and damage to be a standing item in all climate conversations.
“The Kioa Declaration presented by Pacific islanders at COP27 on 8 November, clearly demands urgent and decisive action on mitigation and adaptation, new and additional finance for loss and damage, and the creation of more equitable finance arrangements. We need to ensure a just transition for peoples on the frontline of climate change.
“The Pacific continues to call upon New Zealand to demonstrate the climate leadership it so claims and while the $20 million commitment is a start, we look forward to seeing how New Zealand will continue to support and amplify the demands of the Pacific over the next ten days at COP27.”
350 Aotearoa - Alva Feldmeier, Executive Director
“The New Zealand government dedicating funding for Loss and Damage is a huge step in the right direction. However, we are disappointed that no new funding has been announced and instead the previous $1.3b climate finance commitment is being used to get brownie points on a global stage.
“With 10 more days of negotiations at COP27, we hope that in addition to this announcement the New Zealand delegation will support loss and damage to be a standing agenda point at each COP. Aotearoa has the potential to prove themselves as strong advocates for Pacific Island Nations and developing countries.”
ActionStation - India Logan-Riley, Climate Justice Organiser
ActionStation’s climate justice organiser, India Logan-Riley, is glad that loss and damage is finally getting the financial focus frontline communities have been asking for but urges wealthier countries like New Zealand to rapidly bring new and additional funding to the table as well as take a strong position at this round of negotiations.
“Now that the New Zealand government has nodded to the importance of finance for loss and damage, I look forward to the New Zealand negotiators putting their mouth where their money is, and speaking up in support of Pacific nations in their call for the creation of a loss and damage finance facility in the UN Framework Convention on Climate Change.
“Ambitiously increasing additional funding for loss and damage redress is also in alignment with the New Zealand’s government’s obligations to Te Tiriti o Waitangi. The Wai262 report found that the government has a responsibility to protect mātauranga Māori. That must include protecting our living whakapapa relationships within a broader family of Pacific communities and knowledge systems. Denying ambitious financial support for Pacific communities who are experiencing loss and damage does harm to the mauri of mātauranga Māori. This would constitute a breach of Te Tiriti o Waitangi.
“Loss and damage finance is one of the crucial pieces needed to guarantee future generations access to safety, community and culture. This is increasingly important as communities experience the rapidly escalating impacts of climate change.”
Oxfam Aotearoa - Jo Spratt, Communications and Advocacy Director
Oxfam Aotearoa welcomes and congratulates the NZ government’s recognition that loss and damage exists and requires funding, but Jo Spratt, Communications and Advocacy Director says it still isn’t good enough:
“Sadly, this is not new funding. Instead, it is allocated from New Zealand’s existing climate finance, which is for adaptation and mitigation. Financing for loss and damage must be new and additional to adaptation, mitigation and overseas aid funding. There is a severe funding shortfall - countries are suffering irreversible damage in the climate crisis.
“To put it into perspective, last month Oxfam revealed that 55 of the most climate-vulnerable countries have suffered climate-induced economic losses totalling over half a trillion dollars during the first two decades of this century.
“While New Zealand is amongst the leading countries in providing dedicated funding for loss and damage, two further steps are necessary to clearly demonstrate our commitment to the Pacific. First, New Zealand must back-up this announcement by supporting a new loss and damage finance facility to help ensure that finance to address loss and damage is accessible and sustained, and is delivered in accordance with the principles of climate justice. Second, New Zealand can pledge this $20 million allocation to the new facility.”
Oil Change International - David Tong, Global Industry Campaign Manager
“New Zealand has the power to do more. Loss and damage is a crucial focus here at COP27. More and more people are drawing links between loss and damage and the fossil fuel companies that are most responsible for the climate crisis.
“As New Zealanders struggle to pay rising energy bills, because of a global fossil fuel crisis, we urge our government to join the calls to charge the companies that contributed most to and profit most from this crisis. Taxing big fossil fuel companies and redirecting their profits to the people and nations – especially in the Pacific – who are already facing loss and damage from climate disaster is a real, credible way to mobilise billions in additional loss and damage finance.”
OraTaiao: NZ Climate & Health Council - Dermot Coffey
“While OraTaiao welcomes the announcement of NZ$20m in dedicated loss and damage funding for our Pacific neighbours, the truth is that this is nowhere near sufficient for the magnitude of the impacts of climate change, and can only be looked on as a starting point for further support.
“Many of the direct health impacts of climate change from increases in vector-borne diseases and heat-related deaths, to the psychological devastation and societal disruption of climate-related disasters, will be borne by the people who have contributed the least to the problem. Aotearoa has the moral obligation and financial clout to go beyond the paltry figure announced.”
Coal Action Network Aotearoa - Cindy Baxter
“While it’s good to see the New Zealand government recognising the need for money for Loss and Damage, this reallocation of money from an already dedicated fund renders the announcement as purely symbolic.
“Meanwhile, the government refuses to put a stop to new coal mines, especially on conservation land, and our plans to meet a much of our 2030 climate target by buying international offsets instead of cutting emissions at home undermines our commitment. The more we cut emissions, the less Loss and Damage there will be.
“The Prime Minister claims to “stand with the Pacific”, so we expect to see her delegation in Sharm el-Sheik back the Pacific’s call for a Loss and Damage mechanism within the UNFCCC.”
ABOUT NZCAN
We are a network of over 40 New Zealand civil society groups, non-governmental organisations, trade unions and social movements who support each other and our allies to take real action to protect New Zealanders and others from climate change, to protect New Zealand's unique environment, and build a more fair, just and safe New Zealand for us all.
ABOUT PICAN
Pacific Islands Climate Action Network (PICAN) is a regional alliance of 150 non-governmental organisations (NGOs), civil society organisations (CSOs), social movements and not-for-profit organisations from the Pacific Islands region working on various aspects of climate change, disaster risk and response and sustainable development.
ABOUT CAN-INTERNATIONAL
PICAN and NZCAN are part of Climate Action Network International (CAN). CAN is a worldwide network of over 1800 organisations in more than 130 countries driving collective and sustainable action to fight the climate crisis and to achieve social and racial justice. CAN convenes and coordinates civil society at the UN climate talks and other international fora, including COP27.
CONTACTS FOR COMMENT
Aotearoa: NZCAN Coordinator Rachel Dobric, +6421 068 1240
Pacific (in Egypt for COP27): PICAN Coordinator Lavetanalagi Seru, +679 278 6279