The 28th Conference of Parties (COP28) began last week in Dubai with countries agreeing on the first day how a “loss and damage” fund will operate. The agreement was met with a standing ovation from delegates.
The fund was originally agreed at COP27 in Sharm El Sheikh last year, but details were left to be decided.
The new fund will be run by the World Bank in its first years of operating, with funding provided by wealthy countries which have contributed the greatest volume of greenhouse gases in recent decades. The initial funding is close to US$429m, the bulk of which ($245m) is coming from the EU, with a further $75m from the UK, $24.5m from the US and $10m from Japan.
The agreement to set up the fund was in recognition of the need for rich countries to provide financial assistance to low-income countries, where communities are suffering irreversible destruction from the climate crisis.
Liz Cronin, Climate Policy Lead at international development charity CAFOD, said:
“The COP28 decision to finally operationalise the long-awaited loss and damage fund is a really positive way to start the two weeks here in Dubai.
“The UK has pledged up to £60 million which is a really welcome recognition of how important the fund is and the country’s historic responsibility for climate impacts.
“Whilst this is a great start to COP, the fund now needs filling up with new and additional climate finance that isn’t just moved from existing climate finance commitments. CAFOD are calling on the UK and all developed countries going forward to step up and contribute their fair share to the fund.”
Lyndsay Walsh, Oxfam’s Climate Policy Advisor, said:
“After 32 years of pressure and 27 COPs, we finally have a loss and damage fund. Despite the shortcomings in its structure, this is a very welcome step towards supporting people recovering from the severe and irreparable consequences of climate-fueled disasters. However, this isn’t the end of the journey. A lot of work remains to make sure the World Bank, as interim host, fulfils the conditions outlined in the agreed text —particularly that the fund’s resources directly benefit communities and its operations align with human rights principles.
“Urgently, we now need to see this fund filled with grant-based finance. While the pledges made today are a positive start to COP28, they are a fraction of what is needed. Loss and damage costs in developing countries are already in the hundreds of billions. Over the next weeks and months, we must also see rich countries commit billions in new and additional money. At the backdrop of monster profits for fossil energy giants and extreme billionaire wealth, there are some very obvious places governments could be looking to find additional money.”
Image: Attendees at the Indonesia Pavilion during the UN Climate Change Conference COP28 at Expo City Dubai on November 30, 2023, in Dubai, United Arab Emirates. (Photo by COP28 / Walaa Alshaer)
