Countries seeking more Loss and Damage (L&D) Fund to battle the impacts of the climate crisis can breathe a sigh of relief.
COP 28 delegates have pledged millions of dollars for the loss and damage fund. They reached a significant agreement on the operationalization of the fund to compensate vulnerable nations for climate change-related loss and damage.
The agreement establishes the “Climate Impact and Response Fund,” which will be housed within the World Bank on an interim basis.
The commitments:
UAE led the way with a $100 million commitment to the Fund.
Other countries making notable commitments included:
i. Germany: $100million,
ii. The UK: £40million for the Fund and £20million for other arrangements
iii. Japan: $10million and
iv. the US: $17.5million.
Significance:
For many years, the fund has been deeply divisive and was formerly regarded as the third rail in international climate negotiations. It would use donations made voluntarily, primarily by wealthier nations, and send the money to developing countries to help them prepare for the effects of climate change.
Despite global warming mitigation goals being achieved, vulnerable communities will still face loss and damage due to “locked-in” warming, resulting in storms, floods, decreased agricultural productivity, and rising sea levels.
The Parties will focus on crafting a robust response to the Global Stocktake, a global report card on progress towards the Paris Agreement goals.
Quotes:
“The hard work of many people over many years, has been delivered in Dubai,” said Dr COP28 President Dr. Sultan Al Jaber. “The speed at which the world came together, to get this fund operationalized within one year since Parties agreed to it in Sharm El Sheikh is unprecedented.”
“The responsibility now lies with affluent nations to meet their financial obligations in a manner proportionate to their role in the climate crisis,” said Harjeet Singh, Head, Global Political Strategy, Climate Action Network International.
“Today’s news on loss and damage gives this UN climate conference a running start. All governments and negotiators must use this momentum to deliver ambitious outcomes here in Dubai,” said Simon Stiell, UN Climate Chief at a press conference.
Backdrop:
The Fund was first agreed upon during COP27, held in Sharm El Sheikh, Egypt, and becomes operational today following the agreement reached by parties during 5 transitional committee meetings. The 5th transitional meeting hosted earlier this month in Abu Dhabi was added by the COP28 Presidency following the impasse reached at the 4th meeting, where Parties resolved.