Irish government must commit to loss and damage as new report shows that climate disasters will damage women and girls’ human rights for years

Women in communities vulnerable to climate disasters say ‘world is ending’ as climate disasters set to stifle their rights for decades to come, with the number of people facing starvation in East Africa now more than four times the population of Ireland. 

A new report by ActionAid reveals that lack of loss and damage funding for climate disasters will damage women and girls’ human rights for years to come. The report highlights the long-term extent of climate disasters on women and girls as vulnerable countries with no access to loss and damage funding are pushed further into debt. ActionAid is calling for a long-overdue financing facility to address loss and damage and urges the Irish government to commit to showing political leadership on this issue at COP27 in November. 

‘The Long Shadow of the Climate Crisis: Why a new funding facility must address loss and damage’ demonstrates how women and girls are even more affected by climate disasters than previously recognised in UN climate discourse, with their lives being impacted for years, decades and even generations to come.  

The financial toll of climate emergencies like floods, cyclones and drought is causing devastation and pushing nations even deeper into debt. Instead of being offered debt relief after a climate disaster, countries are often forced to draw finances from the public purse, diverting funds from public services, and adopting punishing austerity measures in order to repay their creditors. 

Impact of climate crises on women and girls

During climate disasters, women and girls are disproportionately affected by hunger, displacement, debt and violence. Then, in the aftermath of disasters, when national budgets are severely strained, they are impacted more by reductions in public service provision such as education and healthcare, and public sector job cuts. These cuts also mean women and girls are expected to fill the gap in care provision with their own unpaid time and work, affecting their education and ability to earn incomes.  

Government cuts in essential public services to cover the costs of recovery from climate disasters and to repay debt, results in millions of people losing their rights, their opportunities for development, and key lifelines out of misery. 

Karol Balfe, CEO of ActionAid Ireland said:

“This report shows for the first time just how far-reaching and long-lasting the consequences of not having a financing facility to address loss and damage are on women and girls at the sharp edge of the climate crisis.” 

“Across the global South nearly half of the agricultural workforce are women, and in sub-Saharan Africa the number is far greater. This means women’s livelihoods and food security are particularly vulnerable to climate crises.” 

“Women are several times more likely to die from climate disasters as men, and the greater the gender and economic inequality, the greater the disparity. 80% of people displaced by climate disasters are women. Girls are pulled out of schooling before their brothers either to save on school fees or to send them to fetch water, setting them on an unequal path for life.” 

Today the Cabinet meeting will discuss Ireland’s engagement with next week’s COP27 negotiations, Ireland can show leadership on Loss and Damage to address the glaring loss of financing for countries facing the impact of the climate crisis. For too long, wealthy countries who are the heaviest polluters, have blocked this call for justice from the Global South” 

“In the aftermath of disasters there’s a window of opportunity to help communities bridge crises, recover and rebuild. But if no help is forthcoming, countries are likely to fall into spiralling poverty. Cuts to the public purse mean that critical lifelines out of hardship, such as investment in education, healthcare and climate adaptation – are all lost to the communities that need them most.” 

Read the full report here.

Protesters holding End Fossil Fuels banner at a climate demonstration, advocating for renewable energy solutions.

Protestors at COP 28 in Dubai. Photo: Konrad Skotnicki.

Climate protest with diverse crowd holding signs about environmental action in a city square.

Belfast Climate Change March, 2019. Photo: Trócaire.

The Profit Driving the Crisis

Despite their overwhelming contribution to global emissions, fossil fuel companies continue to attract significant financial backing—driven by their enduring profitability. This is starkly illustrated by the case of ExxonMobil, the top fossil fuel investment held by asset managers based in Ireland. In 2023, ExxonMobil reported €33.63 billion ($36 billion) in profit. That is almost twice the GDP of Botswana (€18.1 billion) and nearly three times Namibia’s GDP (€11.5 billion).

Ireland plays a hugely disproportionate role in facilitating investments into fossil fuel companies like ExxonMobil. In 2023, the investments made into fossil fuel companies by investment managers based in Ireland generated an estimated 72.5 million tons of CO2e. This is more than the CO2e emissions for the entire country of Ireland—and more than ten times that generated by Sierra Leone.

The Global Human Impact

The climate crisis is here, now, and it is causing disproportionate harm in the Global South. In Bangladesh, rising sea levels and increasingly severe cyclones are displacing coastal communities, with projections indicating that 17% of the entire country could be underwater by 2050. The legally binding Paris Agreement on climate change explicitly acknowledges the importance of tackling private finance. Its three overarching goals are: keeping below 1.5C of warming; increasing adaptation and making finance flows consistent with low emissions and resilience.

This gives a clear mandate for action:  both tax reform and corporate regulation are needed to tackle financial flows, and both nationally in Ireland and at EU level, ‘polluter pays’ taxes are lacking and regulation of the financial sector remains weak and fragmented. While EU regulation exists, it is designed more to nudge investors toward more sustainable investment practices by increasing transparency and reporting levels than to enforce strict standards. And it is moving in the wrong direction: the recently passed EU Corporate Sustainability Due Diligence Directive excluded investments; and now the EU Commission’s Omnibus legislative proposal threatens to undo the limited gains made on climate plans, as well as blocking future attempts for stronger action at national level.

The Risk of Inaction

Fossil fuel investment is too profitable to remain weakly regulated. If Ireland continues with its current strategy of encouraging FDI at all costs, and relying on weak EU regulation, we are headed for catastrophe. The Inter-governmental Panel on Climate Change has repeatedly warned that every fraction of a degree beyond 1.5°C brings irreversible consequences: collapsed ice sheets, vanishing coral reefs, and extreme weather events that will make vast regions of the planet uninhabitable. And yet, companies are developing oil and gas fields that could push global warming beyond 2°C.

Our research found that 91% of the investments made into fossil fuel companies by investment managers based in Ireland were to companies that have plans for fossil fuel expansion like these. Ireland cannot afford inaction on this issue.

About This Research

The figures in this report regarding investment from Ireland are based on new research commissioned by ActionAid Ireland and Trócaire. In the paper, we uncover the scale of fossil fuel investment through Ireland, who the investors are, and in which fossil fuel companies they are investing.  We analyse the current regulatory framework and explain why it is inadequate—and moving in the wrong direction. And we make specific recommendations for change, which are summarised below.

Summary of Recommendations

Regulate the private financial sector
Ireland must end its outsized role as an enabler of destructive fossil fuel investment. Ireland should introduce a strong gender-responsive national human rights and environmental due diligence framework which includes the regulation of investors with respect to human rights and the environment and climate. The transposition of the EU Corporate Sustainability Due Diligence Directive could achieve this if downstream activities are included and the Omnibus proposal is rejected. Ireland should prohibit investments in fossil fuel expansion and require investors to implement climate transition plans consistent with a 1.5°C climate limit.

Endorse the Fossil Fuel Non-Proliferation Treaty
Ireland should endorse developing a Fossil Fuel Non-Proliferation Treaty to curb fossil fuel expansion and commit to a fair and funded phase out of fossil fuels.

Support tax justice
Ireland should support bold and fair new global tax rules through the UN Framework Convention on Tax, should adopt all OECD BEPS measures, and should conduct an updated and comprehensive spillover analysis of its tax policy. Ireland should take coordinated action globally, at the EU level and domestically to introduce a range of new taxes to mobilise finance needed for climate justice, based on ‘polluter pays’ and social equity principles such as wealth taxes for the highest earners, climate damages tax on investors, fossil fuel production taxes and levies on aviation and shipping.

Finance a just transition
Ireland must also meet its fair share climate finance obligations under Article 9.1 of the Paris Agreement, and pay our ecological debt to the Global South. Ireland should support conditionality-free debt cancellation for countries on the front lines of the climate crisis, commit to a new UN Framework Convention on Sovereign Debt, moving debt negotiations from the IMF to the UN, and to a debt workout mechanism that is fully representative and fair.

Further reading