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Study shows difficulty of accessing Loss and Damage funds in Bangladesh

  • Survey of frontline experts in the cyclone-hit country shows communities are at risk of missing out on lifesaving funds
  • International development agency, Christian Aid, calls on world leaders to act, including developing a small grants process so impacted people can access the finance quickly when the need is greatest.

As the Bonn climate talks come to close, a new report by Christian Aid sheds light on the difficulties of frontline communities to access financial support from the Loss and Damage Fund.

The paper, Community access to the Loss and Damage Fund: Insights from the frontline in Bangladesh, is based on a survey of Bangladeshis working for government agencies and civil society groups that work with affected communities as well as academics and other experts.

The research concluded there were several obstacles which make it very difficult for people to access even small grants from the Loss and Damage Fund.

  • Almost all the participants shared the same concern that vulnerable groups do not know about, or have not yet received, information on the Loss and Damage Fund.
  • Most local communities in Bangladesh have no previous experience of accessing international climate funds. A lack of quality education, project design skills and management skills will make it hard for successful applications to be made.
  • Many losses and damages are not assessed or recorded. Participants said that climate induced losses and damages are yet to be adequately assessed, making it a challenge to collect and preserve evidence and utilise it properly.

Shahinur Rahman, is a community member from Koyra in the Khulna region of Bangladesh. He said: “We don’t know how to assess and put a price tag on the grief of a mother who lost her baby to a cyclone or the grief of a son who had to leave his father’s dead body in the floodwater as there was no place to bury it. The dead body was denied a decent a burial. In such cases, we feel powerless.”

The report outlines recommendations to address these problems which could prevent some of the people most in need in the world yet are unable to benefit from the Fund.

  • Both the LDF Board and the respective national governments of developing countries must provide technical and financial support to prepare communities and vulnerable groups to access small grants from the fund.
  • The LDF Board needs to further clarify which communities and vulnerable groups are eligible to apply for small grants.
  • The LDF Board must adopt a simplified accreditation process to provide small grants to communities, Indigenous Peoples and vulnerable groups directly, or via national entities when the system does not allow direct access.
  • The LDF must help strengthen technical capacity and resourcing of climate-impacted communities, so they are able to comply with policies and procedures and fiduciary standards.
  • The LDF Board must also provide support, including financial support, to communities so that they are able to represent themselves in meetings and proceedings.

Report author Nushrat Chowdhury, Christian Aid’s Climate Justice Advisor based in Bangladesh, said: “The frontline communities of Bangladesh are exactly the people the Loss and Damage Fund was set up to help. But this study shows that many of these people are unlikely to be able to access even small grants to help rebuild their lives from extreme weather events. The fund’s board needs to develop its small grants process so that impacted people can access the finance quickly.”

Nushrat Chowdhury added: “In the last few weeks Bangladesh was hit by Cyclone Remal, just another example of the climate crisis causing devastation for some of the world’s poorest communities. Getting the Loss and Damage Fund agreed was a major achievement by developing countries, but it will be useless is the funds can’t reach the people that need it most.

“With climate finance the key topic at the upcoming COP29 summit in Baku, Azerbaijan this year, it’s vital that steps are taken by the Board of the Loss and Damage Fund to make it much clearer how affected communities can access the funds. Otherwise, it will not be fit for purpose.”

ENDS

Notes to editors:

The report can be downloaded at this link: https://www.christianaid.org.uk/sites/default/files/2024-06/community-access-to-the-ldf.pdf

For more information or interview requests contact Joe Ware on jware@christian-aid.org or +447870944485.