Learning Report: Piloting Community-based Loss and Damage Compensation in V20 Countries
Climate change is increasing the frequency and intensity of extreme weather events worldwide, along with the growing pressures from erratic hydrological phenomena. These impacts stretch from mountain peaks to ocean depths, affecting communities on every continent and causing billions of dollars in damages. With the establishment of the Loss and Damage Fund at the 27th Conference of the Parties (COP27) and its formal operationalization at COP28, the Parties adopted the governing instrument for the new fund. This historic decision came after years of advocacy by vulnerable countries and civil society organizations.
The V20/Climate Vulnerable Forum (CVF) countries, in partnership with CARE Deutschland e.V., launched the project “V20 Pioneering Community Funding for Addressing Climate Change Loss & Damage”. Since mid-2023, loss and damage response actions have been initiated in the pioneer countries of Bangladesh (Sharankhola sub-district), Kenya (Garissa County), and Malawi (Chikwawa). The program was set to run until April 2024 and aimed to invest over $ 565,000 to deliver concrete loss and damage responses to vulnerable communities, while also enhancing their climate resilience for the future. The funding was provided by the Open Society Foundations, administered by Aroha Geneva, an international non-governmental organization and non-profit association, in partnership with CARE Germany, which co-financed the initiative with support from Aktion Deutschland Hilft e.V. (ADH). This funding is additional to government-reported Official Development Assistance (ODA) and adaptation finance.
The project’s activities were classified under the thematic area “Livelihood” and the output taxonomies “Livelihood Assets” and “Adaptation Component”. A locally-led adaptation approach was adopted, aimed at compensating climate-affected communities by providing replacement, repair, and reconstruction of livelihood resources, including tools, implements, private houses, water points, solarization, and rangeland conservation. The project also offered training on climate-adaptive livelihood practices, low-cost disaster-resilient house construction, and water point maintenance. Through these compensation initiatives, 40,468 individuals (18,664 women, 21,804 men) from 7,000 households were supported. The project specifically targeted communities affected by Cyclone Amphan (2020) in Sharankhola (Bangladesh), severe flooding (2022) in Garissa (Kenya) caused by El Niño in arid and semi-arid lands, and Tropical Cyclone Freddy (2023) in Chikwawa (Malawi). Given the limited humanitarian assistance through the L&D program, these communities were largely dependent on their own resources for survival.
The learning report emphasizes the urgent need to address vulnerabilities to escalating climate risks and the importance of rapid, effective support systems during climate disasters. Current efforts to respond to climate-related disasters lack the needed coherence and sustainability.
Read and download the full report below:
Learning Report
Piloting Community-based Loss and Damage Compensation in V20 Countries