COP28 opens with the launch of climate 'loss and damage' fund

COP28 kicks off with disaster fund victory

- Jayashree Nandi

LOSS AND DAMAGE FUND - KEY FLASHPOINT

On the opening day of COP28, 196 parties adopted the decision to operationalise the Loss and Damage fund, approving the draft text adopted by the transitional committee in Abu Dhabi earlier this month — a move widely seen as a win for developing countries.

The initial corpus of the fund will be over $400 million, well short of the $400 billion estimates suggest will be needed every year, causing some experts to question the long-term sustainability and viability of the fund.

The UAE, the COP28 presidency, pledged $100 million to the fund, Germany, $100 million, the UK £40 million to the fund and £25 million for other funding arrangements for loss and damage, the US $17.5 million, Japan, $10 million, and the EU, €225 million. The money is expected to help poor and developing countries deal with the impact of the climate crisis.

The World Bank will be interim trustee of the fund which will be conferred with legal personality and capacity as necessary for discharging its roles and functions; in particular, it will have the legal capacity to negotiate, and conclude and enter into a hosting arrangement with the World Bank, the text stated.

The fund will address the needs of developing countries that are particularly vulnerable to the adverse effects of climate change in responding to economic and non-economic loss and damage associated with this, including extreme weather events and slow onset events, the text added.

When asked why US, among top emitters contributed less than others and how the fund can be filled, UNFCCC executive secy, Simon Steill said that more pledges are expected soon, especially at the leaders’ summit on December 1 and 2.