L&D Pilot Funding Arrangements - Tools to respond to non-economic loss and damage

Non-economic loss and damage (NELD) refers to the broad range of losses and damages induced by climate change impacts that cannot be measured in monetary terms, in contrast to economic loss and damage for which monetary valuation is possible (e.g. infrastructure, assets, and income). NELD and economic loss and damage are intertwined, but, thus far, humanitarian, development, and adaptation practitioners have largely focused on saving lives and economic recovery, through reconstruction and rehabilitation. NELD are likely to bear more importance than economic loss and damage for households and communities in developing countries. Recognizing and managing the risk of NELD should, therefore, be a central part of loss and damage recovery interventions given their impact on human welfare.