The entry into force of the fund to finance ‘loss and damage’ caused by climate change was approved with acclaim by some 200 countries on Thursday, on the first day of the United Nations climate summit.
The decision on the fund, which provides financing of USD 100 billion per year, is considered historic and will take shape at the COP28, which started today in Dubai, the main outcome of the COP27, which was held in Egypt in 2022, in which an agreed principle on the content was reached, without the exact contours being laid down.
The operationalization of the fund has been one of the main obstacles to new commitments to reduce emissions by developing countries, which believe that rich countries must compensate for the impact these commitments will have on economic development.
“I congratulate the parties on this historic decision. It is a positive sign for the world and for our work,” said Sultan Al Jaber, President of COP28.
This is the moment when the Parties have jointly agreed to operationalize Loss and Damage.
Within an hour of the decision, more than $420 million was pledged, demonstrating the collective political will to support those most vulnerable to climate change. pic.twitter.com/w6r97qc9SO
– COP28 UAE (@COP28_UAE) November 30, 2023
After a year of impasse, countries from the north and south reached a fragile compromise on the operating rules of this fund, the effective launch of which is now scheduled for 2024.
The fund’s approval allays fears of a retreat from the pledge, which would have weighed heavily on the rest of the negotiations on curbing greenhouse gas emissions, with implications for global warming.
Madeleine Diouf Sarr, president of the Group of Least Developed Countries, which represents the 46 poorest countries, welcomed the decision, attributing it to “huge significance for climate justice.”
“But an empty fund cannot help our citizens,” he emphasized.
“Rich countries must now announce significant contributions,” added Friederike Röder of the non-governmental organization (NGO) Global Citizen, calling for new international taxes.
“There is money, as the profits of the oil and gas industry show,” he declared.
According to several negotiators contacted by the AFP agency, the European Union, Germany, France and Denmark are about to announce an initial contribution, in the order of hundreds of millions of dollars.
The United Arab Emirates, host of COP28, immediately announced a $100 million contribution.
These amounts are still far from the tens of billions needed to finance climate change damage reduction in the most vulnerable countries.
The first contributions “will make it possible to finance pilot projects” and test the functioning of the fund, “against a larger tranche of financing within a year or a year and a half”, once its credibility has been proven in the eyes. from donors, a European diplomat explained.
According to the adopted text, the fund must be deposited with the World Bank for a provisional period of four years. Developing countries initially strongly opposed this option, claiming that the institution was in the hands of Westerners and was not suitable for their needs.
On the other hand, developed countries, led by the United States, refused to make their contributions mandatory rather than voluntary, demanding an expansion of the donor base to rich emerging countries, such as Saudi Arabia or China.
“It is an unprecedented achievement,” says COP28 chairman
The COP28 president viewed the agreement on the entry into force of the fund to finance ‘loss and damage’ due to climate change as historic, stressing on the first day of the summit that it is a ‘unique achievement’.
“The fact that we have been able to deliver on what was promised in Sharm El-Sheikh – activating and operationalizing the fund – is historic and an unprecedented achievement,” said Sultan Al Jaber.
At a press conference, which started almost two hours late due to the debate, the COP28 president believed that the text adopted today reflects the “optimistic atmosphere” of the summit, where the “real work is only just beginning” .
Al Jaber also highlighted the commitments that several countries have already made under the ‘loss and damage’ financing fund, for which the United Arab Emirates has announced $100 million, an amount equal to that announced by Germany.
Reflecting on the first day of COP28, the Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC), Simon Stiell, also highlighted the “historic decision” and called on world leaders to “use this momentum to deliver real results.” books’. ambitious.”
“And when the path seems more difficult, I call on the teams to go beyond traditional negotiating positions and find solutions and ways forward,” said the person in charge.
Despite what was approved today, the final text on the operation of the fund to finance ‘loss and damage’ due to climate change will only be adopted at the end of the summit, scheduled for December 12.
Source: DN
