In a historic move, COP28 successfully established the long-awaited Loss and Damage Fund on the conference’s opening day, marking a significant win for the COP28 presidency and a breakthrough for small island states advocating for the fund for three decades.
After five meetings this year, the Loss and Damage Transitional Committee reached a consensus. Despite persistent disagreements between developing and developed nations on crucial aspects, such as the role of the World Bank and mechanisms like direct access, the committee agreed on a set of recommendations for the fund.
The UAE, hosting COP28, is poised to view this development as a substantial victory, given the protracted campaign by small island states and the controversies surrounding the conference’s organisation.
Pledges to the Loss and Damage Fund, reaching more than USD 250 million so far, have already been made, signalling a collective commitment to addressing the impacts of climate change.
The official COP28 presidency X (twitter) account celebrated the UAE’s commitment: “The UAE is committing $100 million to Loss and Damage, an important milestone in delivering for vulnerable communities and building resilience for people suffering the devastating impacts of climate change. We encourage leaders to raise ambition and unlock the crucial funding required to ensure a transformational COP28.”
COP28 President Dr. Sultan Al Jaber expressed pride in the decision’s prompt adoption, stating, “We have delivered history today, the first time a decision has been adopted on day one of any COP. This is evidence that we can deliver.”
A recent study by Dr. James Rising at the University of Delaware estimated that global economic loss and damage from climate change amounted to approximately USD 1.5 trillion in 2022. On average, countries in the Global South lost 8.3% of their GDP due to the impact of climate change.
Avinash Persaud, a developing country negotiator and special climate envoy to Barbados and Prime Minister Mottley, described the agreement as a “hard-fought historic agreement”. He emphasised its significance in acknowledging climate loss and damage as a reality for almost half of the world’s population.
Joe Thwaites, Senior Advocate for International Climate Finance at NRDC (Natural Resources Defense Council), lauded the establishment of the Loss and Damage Fund as a historic achievement, stressing that it would provide urgent assistance to vulnerable communities facing the immediate impacts of the climate crisis. Thwaites called on all wealthy and high-emitting countries to step up and contribute to the fund, highlighting their shared responsibility. (nsh)
