The Standing Committee on Finance (SCF) held its 2016 Forum under the theme, 'Financial instruments that address the risks of loss and damage associated with the adverse effects of climate change.' Discussions at the Forum highlighted the need for a holistic and integrated approach to addressing the risks of loss and damage, while underscoring that there is no one-size-fits-all to mobilizing support.
6 September 2016: The Standing Committee on Finance (SCF) held its 2016 Forum under the theme, ‘Financial instruments that address the risks of loss and damage associated with the adverse effects of climate change.’ Discussions at the Forum highlighted the need for a holistic and integrated approach to addressing the risks of loss and damage, while underscoring that there is no one-size-fits-all to mobilizing support.
The theme for the fourth annual Forum was selected at the invitation of the Executive Committee of the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM). With approximately 200 experts in attendance, representing the public, private, multilateral, academic and non-profit sectors, discussions covered the local, national, regional and international levels. Participants examined the gaps and limitations, as well as good practices, associated with currently available financial instruments.
Through 20 technical presentations and 14 break-out groups, in addition to plenary discussions, the Forum explored topics such as risk transfer schemes, social protection schemes, catastrophe and resilience bonds, public-private collaboration and contingency finance. The outcomes of the Forum revealed a need to further discuss smart designs and combinations of financial instruments to ensure the varying circumstances of different countries can be accommodated.
Noting the need for more engagement with stakeholders, participants also called for considering the “suitability, sustainability, affordability and accessibility” of the diverse financial instruments available when designing an appropriate response to a climate change impact resulting in loss and damage. Such impacts include extreme events like hurricanes, heat waves, droughts, sea-level rise and desertification.
The Forum, which was held from 5-6 September 2016, at the ADB headquarters in Mandaluyong, the Philippines, was co-organized by the SCF, the Asian Development Bank (ADB) and the Climate Change Commission of the Government of the Philippines.
The SCF was established by the Conference of the Parties to the UNFCCC (COP) in 2010 to assist the COP in exercising its duties in relation to the Financial Mechanism of the Convention in terms of improving coherence and coordination in the delivery of climate change financing, rationalization of the Financial Mechanism, mobilization of financial resources, and measurement, reporting and verification (MRV) of support provided to developing country Parties. The outcomes of the Forum will be reported to COP 22 in November 2016. [UNFCCC Press Release Pre-Forum] [UNFCCC Press Release Post-Forum] [2016 SCF Forum Webpage] [SCF Forum 2016 Summary Note]