In a historic move at the UN’s COP28 talks, the launch of a climate “loss and damage” fund received praise and hundreds of millions of dollars in pledges, yet warnings persist that more is needed to support vulnerable nations.
“We have delivered history today,” declared the UAE’s COP28 president, Sultan Al Jaber, receiving applause from delegates in Dubai.
Financial pledges swiftly followed the announcement, including 225 million euros ($246 million) from the European Union, $100 million from the UAE, another $100 million from Germany, $40 million from Britain, $17.5 million from the United States, and $10 million from Japan.
The fund, housed at the World Bank on an interim basis, resulted from landmark agreements at COP27 in Egypt last year after years of deliberation by wealthy nations. Despite this, the funds pledged fall short of the $100 billion sought by developing nations to cover losses from natural disasters.
“The progress we’ve made in establishing a loss and damage fund is hugely significant for climate justice, but an empty fund can’t help our people,” commented Madeleine Diouf Sarr, chair of the Group of the 46 Least Developed Countries.
The Alliance of Small Island States, among the most impacted by climate change, emphasized that “the work is far from over” and urged adequate financing to alleviate the burden on vulnerable communities.
Rachel Cleetus from the Union of Concerned Scientists stated that the financial commitments should be “in the billions, not millions,” emphasizing the urgency of meeting rising needs.
The fund’s interim placement at the World Bank for four years, accepted begrudgingly by developing nations, awaits the appointment of board members representing wealthy and developing nations. The first contributions aim to finance pilot projects and test the fund’s efficacy before seeking additional funding.
US climate envoy John Kerry highlighted that contributions remain voluntary, urging richer emerging powers like China and Saudi Arabia to contribute. Despite the progress, acknowledgment of dissatisfaction from civil society underscores the ongoing challenges in addressing climate-related losses and damages.
