Page - 19 - in Loss and Damage from Climate Change - Concepts, Methods and Policy Options

1 Science forLossandDamage.FindingsandPropositions 19 ofL&Dfinance needs.AnilMarkandya andMikelGonzález-Eguino presentwhat we can learn about possible L&Dfinance needed from an economic angle in the chapter on Integrated Assessment for Identifying Climate Finance Needs for Loss and Damage: A Critical Review. This economic perspective presents and critically reviewsamethodologicalapproach thatbuildsoneconomicrationality for modellingmarket-based andmonetised risks, and actual and perceived trade-offs between investment into income-generatingactions, climatemitigationandadapta- tion. Specifically, the authors present estimates usingEconomic IntegratedAssess- mentModelling (EIAM),which calculates economically optimal responses to cli- mate change mitigation and adaptation in terms of maximising welfare (GDP) a fewdecades into the future. Interpretingmodelled residual damages as unavoided lossesanddamages,anumberofimplicationsemergefromtheanalysis.Theauthors emphasise thatuncertaintiesarevery largeandanymeaningfulprojectionsof resid- ual damages in themedium to long term are currently not feasible. Furthermore, residualdamagesarefoundtostronglyvarybyregionaswellasbyclimatescenario. Overall, the chapter finds residual damages to appear significant under a variety of models, and for a range of climate scenarios for both developing and developed countries. 1.4.4 GeographicPerspectivesandCases Manychaptersinthisvolumecontextualisetheirdiscussionsandfindingswithexam- plesofplace-basedinsight.Thesectionongeographicperspectivesandcasesfocuses strongly on local experience in relation to L&D. Small Island Developing States (SIDS),beinghighlyvulnerabletoclimatechangedueto,amongothersimpacts,sea- level rise andassociatedconsequences, started thediscussiononL&Dandarevery vocal in thedebate. JohnHandmerandJohannaNalau localise theglobaldebateby focusingonPacificSIDSintheircontributiononUnderstandingLossandDamage in Pacific Small Island Developing States. Specifically, the authors provide com- mentary regarding the risk and options space (as discussed in Schinko et al. 2018 andMechlerandSchinko2016) in theWesternPacificSIDScontext,particularly in Vanuatu,wheremanyofthelivelihoodactivitiesaresubsistence-based,reliantonthe currentclimateanditsvariability,andalreadyseriouslydisruptedbyextremeweather events.As the authors show, for some low-lying island states climate changeposes an existential threat, and the region is increasingly recognised as one that ismost immediately vulnerable to potentialmassmigration and relocation due to climate change.Theauthors thusfindtheoptions-policyspaceforSIDSveryconstrainedas demonstratedthroughevidenceonsoft(intolerablerisk)andhardlimits(irreversible high-level risk).Theauthors concludewith aproposal tomainstreamL&Daspects intosectoralpoliciesandstrategies inPacificSIDSinorder tobettermanagethesoft limits andunderstandanyhard limits that couldaffectvulnerablecommunities. Migrationanddisplacementdrivenbyclimate-relatedimpactsandrisksisareality in thePacific andother regions.The chapter onClimate Migration and Cultural