Loss and damage in informal urban settlements: Summary report

This report examines the economic and non-economic losses experienced in three major cities: São Paulo (Brazil), Nairobi (Kenya), and Jakarta (Indonesia). Climate-induced losses and damages (L&D) are disproportionately impacting informal urban settlements worldwide, these settlements often face particularly high risks from climate-related hazards such as floods, heatwaves, and droughts.

The findings emphasize the need for recognition of existing community-led action, improved local-level data availability and related assessments of disaster losses and damages, and the development of adequate finance mechanisms accessible to the most vulnerable populations. This study calls for holistic approaches that address root causes of vulnerabilities and identifies three pathways to bring L&D finance to the local level, including multi-level governance approaches that bridge local, national, and global level action.