A window into what we are reading at the Wilson Center’s Environmental Change and Security Program

How One Loss and Damage Fund Bore Fruit (The Guardian)  

The Loss and Damage Fund established during the UN COP27 was a monumental breakthrough in the climate finance realm and aimed to provide financial assistance to vulnerable nations impacted by climate change. Such damage can be catastrophic. When Cyclone Freddy hit Malawi in 2023, it killed 1,200 people and displaced 659,000 more. The estimated economic loss exceeded $1 billion, and it landed especially hard on farmers—including the women who make up more than 70% of Malawi’s agricultural workforce. 

In 2023, I embarked on a journey with a group of energy policy researchers from Beijing to visit several Chinese coal cities. We wanted to understand the implementation of China’s decarbonization policies in the heartland of coal mining. As we drove into a coal-rich town in western Shanxi Province, the narrow roads were filled with loud rumbling coal trucks. Amid soot-streaked buildings, newer homes housed families who were relocated from areas affected by coal mining subsidence. The town’s existence hinged on coal. Yet, this dependency has an expiration date — the local mines will be depleted in 10 to 15 years.

Resource-rich nations such as the Democratic Republic of Congo (DRC) and Rwanda—which produce minerals ranging from coltan, cobalt, gold, tungsten, and tantalum, to tin (3TG)—hold tremendous importance in the global supply chains. The DRC produces 70% of global cobalt production, while its neighbor, Rwanda, generates around 30% of Tantalum.