A side event at the UNFCCC Intersessional Climate Negotiations (SB62) underscored the urgent need to integrate cultural, moral, and human rights dimensions into climate finance strategies. Photo: UN Climate Change - Lara Murillo
Faith-based and indigenous insights reshape climate finance for loss and damage
(LWI) – At the UNFCCC Intersessional Climate Negotiations (SB62) held in Bonn, Germany, the Lutheran World Federation (LWF), in collaboration with key partners, hosted a high-level side event, spotlighting a critical yet often overlooked dimension of climate policy: Non-Economic Loss and Damage (NELD).
The event, held on 19 June, brought together faith-based organizations, indigenous leaders, and government representatives from Vanuatu and Madagascar to explore how climate finance mechanisms – particularly the Fund for Responding to Loss and Damage (FRLD) – can be more inclusive, just, and effective.
Reframing climate finance
Climate finance refers to the financial resources and investments that are directed toward addressing climate change. This includes both mitigation (reducing greenhouse gas emissions) and adaptation (adjusting to the effects of climate change). This plays a crucial role in supporting sustainable development, especially in developing countries.
But what about the loss of a sacred place, a language, or a way of life? These are harder to measure, but they matter deeply to people, especially in vulnerable communities. Panelists at the side-event underscored the urgent need to integrate cultural, moral, and human rights dimensions into climate finance strategies.
Faith-based organizations (FBOs), with their deep community ties and ethical grounding, offer essential perspectives for addressing non-economic loss and damage. Their involvement is key to shaping climate responses that uphold human dignity and reflect lived realities.
Advocating for the care for creation, human rights, and biodiversity
Elena Cedillo, LWF’s Program Executive for Climate Justice, and Budi Tjahjono, International Advocacy Director from Franciscans International, spoke of NELD as a moral issue, not just a policy challenge. “We’re talking about justice, dignity, and care for creation,” they emphasized.
Climate justice means recognizing not only what can be measured in dollars, but also the value of what cannot – our culture, identities, and collective wellbeing.
Stephanie Stephens, government representative from Vanuatu
Government representative Stephanie Stephens emphasized Vanuatu’s pioneering efforts to integrate NELD into national planning: “Climate justice means recognizing not only what can be measured in dollars, but also the value of what cannot – our culture, identities, and collective wellbeing.”
Haja Randriasandratana, Chief of Climate Finance Adaptation, highlighted Madagascar’s experience with profound non-economic losses, including displacement and biodiversity degradation: “True climate justice must account for invisible yet fundamental dimensions such as social healing, cultural resilience, and identity preservation,” he urged.
Jocabed Solano from Memoria Indígena shared powerful stories from indigenous communities disproportionately affected by NELD, advocating for the prioritization of indigenous knowledge and rights in climate responses.
Dr Katherine Braun, Refugee and Human Rights Officer from the Evangelical Lutheran Church in Northern Germany, addressed the intersection of NELD with internal displacement, emphasizing the need for climate finance to reflect differential impacts, especially on women and vulnerable groups.
The event marked a decisive step toward reshaping climate finance to reflect the full spectrum of loss and damage. By integrating faith-based and indigenous insights, policymakers can craft more humane and effective responses to the climate crisis.
