Insufficient pledges in the wake of intensifying Climate Impacts

Insufficient pledges in the wake of intensifying Climate Impacts. By: Florence Ogola Fuchs December 19,2025 The impact of climate change is being felt globally, from wildfires to flooding, droughts, and heat waves, name it. These disasters have, over the years, continued to grow in frequency and intensity, resulting in loss and damage in many forms, including economic, social, and cultural. These losses and damages are cascading out of control, with hundreds of billions of dollars lost annually. In a report published by the World Economic Forum in 2023, an estimated $16 million is lost every hour due to climate change, translating to $1.7–3.1 trillion per year by 2050. Photo Credit: Freep!k To put this into perspective, the recent climate disasters across Indonesia, Southern Thailand, Sri Lanka, and Australia have resulted in great losses from causing thousands of deaths, displacing millions, and inflicting tens of billions of dollars in damages. In Indonesia, for instance, Torrential rains and landslides linked to cyclone Senyar destroyed more than 156,000 homes, nearly 1,000 people were confirmed dead, with 234 missing and 5,000 injured. The cost of loss and damage is estimated at $5 billion.    In Sri Lanka, cyclone Ditwah, considered the country’s worst disaster since the 2004 tsunami, led to between 355 to 500 fatalities, with hundreds reported missing and over 1 million people displaced. The loss and damage is estimated at $6 to 7 billion. When such disasters hit, the most affected are vulnerable communities especially in developing countries like Sri Lanka.  Climate change is amplifying rainfall, cyclones and heatwaves making disasters like floods and forest fires frequent and intense. Reports have shown that even developed nations are now struggling to adapt. A country like Australia has had back-to-back climate related disasters costing up to $2.2 billion in the first half of 2025 alone. It is projected that this loss will grow to $8.7 annually by 2050 with the current trends and inaction.   The Warsaw International Mechanism The Warsaw International Mechanism for loss and damage established under the UNFCCC in 2013 sets out to support developing countries that are vulnerable to the effects of climate change by enhancing knowledge and undersetting of risks associated with climate change. Secondly, strengthening dialogue and coordination among relevant stakeholders and lastly enhancing action and support including financial, technology and capacity building.  Flooded river with fisher folk boats. Photo Credit: Freep!k The Exactly 11 years later, at COP27 global leaders reached a historical agreement to create the loss and damage fund. The Fund for Responding to Loss and Damage (FRLD) enables the mobilization funds –from governments and the private entities, for projects addressing climate related losses particularly in vulnerable developing countries. COP28 held in November 2023 saw the operationalization and first pledges for FRLD from governments trickle in.  Development on FRLD thus farAt COP28 about $700 million was committed. At COP30 the push was not just to secure more contributions but also about establishing a governing body, and its accessibility and implementation. At COP29 in Baku (2024), the review of the Warsaw International Mechanism (WIM) concluded with recognition of progress since the last review in 2019 and also identified significant gaps in finance and implementation. The outcome reaffirmed the WIM’s role in addressing loss and damage, strengthened its link to the Santiago Network, and aligned its work with the Global Stocktake. COP29 noted progress in defining the functions and structure of the Santiago Network, which connects vulnerable countries with technical assistance for loss and damage. However, financing for loss and damage remains at levels insufficient to meet identified needs. Scaling up resources is necessary to support the new climate finance goal of at least $300 billion annually by 2035.  As of March 2025, the FRDL had received a total of $768.4 million in pledges from 27 countries. At the recently concluded COP30 in Brazil, little progress was made as far as pledges to the facility is concerned. However, it is important to note the establishment of the Barbados Implementation Modalities (BIM) to respond to loss and damage. The board of the FRDL has set aside $250 million for the years 2025 and 2026, putting out a call for developing countries to submit funding requests for projects worth between $5 million and $20 million USD. According to BIM, this first rollout will provide a practical opportunity to learn and put in place policies that will support future processes. What Inaction means for the Future of the Planet The recently published Global Environment Outlook 7 (GEO 7) emphasized the interconnectedness of the climate crisis, biodiversity loss, pollution, and land degradation which could lead to catastrophic outcomes without urgent action. The report underscores that environmental decline is not isolated but deeply linked to social and economic inequalities, making sustainability inseparable from justice and equity. While emphasizing the implications of inaction, GEO 7 presents an alternative vision: a “future we choose.” This vision calls for urgent investment in a healthier planet, which could in turn yield trillions in benefits. The report emphasizes systemic transformations across energy, food, water, and urban systems. It also pushes for the integration of policies that combine climate action, biodiversity protection, and pollution reduction, rather than viewing them in isolation. While at it, indigenous and local communities’ voices are critical to shaping sustainable pathways.  Governments, businesses, and civil society must unite and speak with one voice in demanding urgent, concrete investment in the future of our planet. The least developed countries, although least responsible for climate change, are suffering the most severe consequences. Developed countries have a clear obligation to bear the financial costs for the harm, in line with the ‘polluter pays’ principle. This support is not charity or a loan; it is a matter of accountability and justice. Tags :Loss and Damage, Climate Change. About Us At Pitchnest, we’re more than just communications experts, we’re storytellers, strategists, and passionate advocates for a healthier planet. Our team brings together diverse voices and deep experience in campaigns, communications, and climate action, united by a shared belief: