The Government has today announced it's set aside $20 million in funding to help address loss and damage caused by climate change in developing countries.
The dedicated funding, allocated from the Government's $1.3 billion climate finance commitment made in October 2021, comes as part of its commitment to deal with the impacts of climate change not covered by funding for adaptation measures.
"Dedicating funding for loss and damage places Aotearoa New Zealand at the leading edge of wealthy countries who are supporting action to address loss and damage from climate change," Foreign Minister Nanaia Mahuta said.
She said the funding "strongly signals" the Government's support for its partners in the Pacific, noting that the threat of sea level rise was leading not only to a loss of land resources in the region, but also impacting its freshwater systems, ecosystems and "the very basis of their lives".
"Loss and damage is happening to homes and crops and fisheries, but it also happens to cultures, languages, people’s mental health and their physical well-being," she said.
Climate Change Minister James Shaw said New Zealand is "one of only three countries in the world to dedicate such funding" to loss and damage as talks around climate compensation is raised for the first time at COP27 in Egypt.
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Shaw said wealthy countries such as New Zealand "have a duty to support countries most at-risk from climate change", not only through a reduction in climate pollution, but also through its support of at-risk nations to "cope with the unavoidable impacts of the climate crisis".
He said while negotiations for developed nations to provide support for countries most at risk of climate loss and damage have been "frustratingly slow", New Zealand is now "taking a leading role to advance global action on loss and damage".
Mahuta added that COP27 is also "likely to discuss a centralised fund for international commitments for loss and damage".
She said while the country is "not opposed" to the move, the Government is looking to provide support for a "wide range of funding arrangements to make best use of our contribution".
"We will work with our partners, in particular Pacific governments, to support areas they identify as priorities," she said.
Speaking to Breakfast this morning, Shaw said climate change is the number one concern raised by Pacific leaders.
"If you talk to the Cook Islands for example, they estimate that 25% of their annual budget is devoted to climate related costs in some way, whether that's cleaning up after cyclone damage, trying to make their electricity more resilient, the future cyclones."
He says it's an "absolutely staggering" portion of the country's total costs.
"Countries are feeling the effects of climate change right now and it is absolutely urgent that we provide support with those costs as they arise."
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