Please refer to the attached file. Caritas calls for radical rethink of climate Loss and Damage finance amid growing geopolitical uncertainty New paper calls for radical rethink of climate Loss and Damage finance amid growing geopolitical uncertainty A new paper from Caritas Internationalis and the Scottish Catholic International Aid Fund (SCIAF) warns that the future of the international Loss and Damage Fund is at risk at precisely the moment when climate impacts are intensifying and global cooperation is under growing strain. Too Big to Fail: Finance for Loss and Damage in a Rupturing World argues that the Fund for Responding to Loss and Damage (FRLD) must move beyond its reliance on voluntary government pledges and develop a more predictable, sustainable financing model or risk undermining trust in international climate cooperation. The paper makes the case that financing Loss and Damage is not only a matter of climate justice, but a strategic investment in global stability. As climate-related losses deepen economic insecurity, displacement and tensions between countries, failing to support vulnerable communities’ risks compounding the pressures that threaten international peace. It calls for developed countries to commit to substantially greater public finance, alongside new international revenue mechanisms such as a Climate Damages Tax on fossil-fuel extraction and solidarity levies on aviation and financial transactions. It also urges governments to ensure that funding can reach affected countries and communities rapidly, including through a dedicated rapid-response window for sudden-onset disasters. With international aid under pressure and governments increasingly focused on competing geopolitical priorities, the paper argues that the FRLD offers a vital opportunity to demonstrate that multilateral cooperation can still deliver tangible results, and that addressing global injustice is in the interests of all countries. Arpana Karki, Caritas Internationalis Programme Manager, Nepal, Disaster Management Desk: “The floods in Nepal have left people unable to identify their own land, destroyed homes and farmland, and damaged essential water infrastructure. For many families, the loss is so profound that they have no bodies to bury and no chance to grieve. We must invest in recovery, climate adaptation and early warning systems so communities are better prepared for disasters that can no longer be considered rare. ” Harjeet Singh, Global Convener, Fill the Fund campaign, and Founding Director, Satat Sampada Climate Foundation “Communities in the Global South are paying the price for a climate crisis they did little to cause. Nepal’s devastating floods exposed the gap between promises on loss and damage finance and the support people actually receive. Financing must be accessible when communities need it, rather than leaving countries to borrow to survive a crisis they didn’t create. Making polluters pay is not an act of charity; it is a matter of climate justice. ” Evans Njewa, Senior Climate Change Diplomat and former Chairperson of the 44 LDCs under the UN Climate Change negotiations “Climate change is already costing lives, destroying livelihoods and forcing people from their homes through migration, displacement and relocation. As we move towards COP31, we must shift from reactive aid to proactive financing that mobilises resources before disasters strike. This requires innovative financial systems, better forecasting and the involvement of the private sector. Climate risks affect us all, and we must act now. ” Ben Wilson, Director of Public Engagement at SCIAF and co-author of the paper, said: “Financing Loss and Damage is not just a question of climate justice. It is also an investment in a more peaceful and stable world. When climate-related losses go unaddressed, they can deepen poverty, displacement and tensions between countries, undermining the foundations of international cooperation. “A stronger, properly financed Loss and Damage Fund offers an opportunity to turn solidarity into practical action, helping address these injustices before they become deeper sources of instability. In an increasingly fractured world, supporting the countries and communities on the frontlines of climate change is in the interests of us all. ” The paper concludes with a call for governments at COP31 to commit to a quantified public finance floor, initiate a time-bound process to agree new international revenue mechanisms, and strengthen the Fund’s ability to deliver support where and when it is needed. Notes to editors * Too Big to Fail: Finance for Loss and Damage in a Rupturing World (2026) is co-authored by Ben Wilson, Alphaeus Ngonga and Rebecca Foster. * Download the paper: https: //www. caritas. org/wp-content/uploads/2026/10/Caritas-Loss-and-Damage-Position-Paper-2026. pdf The post Caritas calls for radical rethink of climate Loss and Damage finance amid growing geopolitical uncertainty appeared first on Caritas.
Nepal: Too Big to Fail: Finance for Loss and Damage in a Rupturing World
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