Nepal Seeks Radical Rethink of Climate Loss and Damage Finance

A new paper from Caritas Internationalis and the Scottish Catholic International Aid Fund warns that the international Loss and Damage Fund is at risk due to growing geopolitical uncertainty and climate impacts. The paper calls for a more predictable and sustainable financing model, citing the need for developed countries to commit to greater public finance and new revenue mechanisms. This includes a Climate Damages Tax on fossil-fuel extraction and solidarity levies on aviation and financial transactions. The authors argue that financing Loss and Damage is not only a matter of climate justice but also a strategic investment in global stability. They urge governments to ensure funding reaches affected countries and communities rapidly, including through a dedicated rapid-response window for sudden-onset disasters.