Loss and Damage – Assessing Institutional Arrangements from National to Local Levels – POLICY BRIEF

Countries face rising climate-related loss and damage that increasingly strain existing governance, finance and institutional systems. Strengthening national and sub-national governance is essential to move from fragmented, reactive approaches toward more coherent, anticipatory and equitable action.

When L&D remains embedded across disaster management, adaptation and sectoral policies without a clear institutional anchor, responsibilities can become fragmented, coordination may weaken, and non-economic losses and damages tend to fall through the cracks.

At the same time, the evolving international architecture – such as the Fund for Responding to Loss and Damage (FRLD), Enhanced Transparency Framework (ETF) and Global Stocktake (GST) – effectively requires nationally identifiable focal points and integrated data systems, which diffuse institutional arrangements often struggle to provide.

Based on the main publication Loss and Damage – Assessing Institutional Arrangements from National to Local Levels, this policy brief provides four priority areas where policymakers can drive progress, supported by practical entry points that can be adapted to different country contexts and aligned with emerging international guidance. Achieving coherent, integrated governance for loss and damage requires strengthening institutions, improving data, embedding participation, and aligning finance.

Countries can tailor the recommendations under this policy brief to their own governance structures and capacities while drawing on emerging international guidance and support mechanisms.

This publication was developed by the UNEP Copenhagen Climate Centre and the Danish Institute for International Studies (DIIS). UNEP Copenhagen Climate Centre was supported by funding provided by the Ministry of Foreign Affairs of Denmark (Danida).

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Published year:2026
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Publisher:UNEP Copenhagen Climate Centre and Danish Institute for International Studies (DIIS)

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Fatemeh Bakhtiari

Senior Advisor - Climate Policy, Loss and Damage

Joshitha Sankam

Project Officer - Loss & Damage and Health