Making climate funding fair for everyone
Faith-based and indigenous insights reshape climate finance for loss and damage
(LWI) – At the UNFCCC Intersessional Climate Negotiations (SB62) held in Bonn, Germany, the Lutheran World Federation (LWF), in collaboration with key partners, hosted a high-level side event, spotlighting a critical yet often overlooked dimension of climate policy: Non-Economic Loss and Damage (NELD).
The event, held on 19 June, brought together faith-based organizations, indigenous leaders, and government representatives from Vanuatu and Madagascar to explore how climate finance mechanisms – particularly the Fund for Responding to Loss and Damage (FRLD) – can be more inclusive, just, and effective.
Reframing climate finance
Climate finance refers to the financial resources and investments that are directed toward addressing climate change. This includes both mitigation (reducing greenhouse gas emissions) and adaptation (adjusting to the effects of climate change). This plays a crucial role in supporting sustainable development, especially in developing countries.
But what about the loss of a sacred place, a language, or a way of life? These are harder to measure, but they matter deeply to people, especially in vulnerable communities. Panelists at the side-event underscored the urgent need to integrate cultural, moral, and human rights dimensions into climate finance strategies.
Faith-based organizations (FBOs), with their deep community ties and ethical grounding, offer essential perspectives for addressing non-economic loss and damage. Their involvement is key to shaping climate responses that uphold human dignity and reflect lived realities.
Advocating for the care for creation, human rights, and biodiversity
Elena Cedillo, LWF’s Program Executive for Climate Justice, and Budi Tjahjono, International Advocacy Director from Franciscans International, spoke of NELD as a moral issue, not just a policy challenge. “We’re talking about justice, dignity, and care for creation,” they emphasized.