The world just took a big step toward compensating countries hit by deadly floods, heat and droughts.
Nearly all nations on Thursday finalized the creation of a fund to help compensate countries struggling to cope with loss and damage caused by climate change, seen as a major first-day breakthrough at this year’s U.N. climate conference. Some countries started putting in money right away — if little compared to the overall anticipated needs.
Sultan al-Jaber, the president of the COP28 climate conference in Dubai, hailed “the first decision to be adopted on Day One of any COP” — and his country, the United Arab Emirates — would chip in $100 million to the fund. Other countries stepped up with big-ticket commitments, including Germany, also at $100 million.
Initial steps toward creating the fund was a major accomplishments at last year’s U.N. climate conference in Egypt, but it was never finalized. Even after Thursday’s agreement, many details of the “loss and damage fund” were left unresolved, such as how large it would be, who would administer it over the long term, and more.
Some activists and experts were skeptical that the fund will raise anything close to that amount. A Green Climate Fund that was first proposed at the 2009 climate talks in Copenhagen, and began raising money in 2014, hasn’t come close to its goal of $100 billion annually.
Rachel Cleetus, policy director and lead economist for the climate and energy Program at the Union of Concerned Scientists, said the creation on the fund on COP28’s first day was “a significant step forward in the fight for climate justice” — but said the initial pledges were “a small, inadequate start” and required follow-up from richer nations.
Still, experts said the show of unity demonstrated how the world could come together in short order to address devastation left behind from natural catastrophes like tropical storm Daniel that hammered Libya with massive flooding in September, and Cyclone Freddy that battered several African nations early in the year.
“It’s great to see the Loss and Damage Fund established,” said Mohamed Adow, director of Power Shift Africa, a think tank focusing on climate issues. “At the start of COP27 in Egypt last year, many people said it wouldn’t even be agreed, let alone created within 12 months.”
But Adow also noted that there were “no hard deadlines, no targets, and countries are not obligated to pay into it, despite the whole point being for rich, high-polluting nations to support vulnerable communities who have suffered from climate impacts.”
Avinash Persaud, special climate envoy for Barbados who was part of the talks to finalize the fund, praised the “hard-fought historic agreement,” and said it showed a “recognition that climate loss and damage is not a distant risk but part of the lived reality of almost half of the world’s population.”
Young climate activists demanded staying power for the fund: Ineza Grace, 27, an environmentalist from Rwanda, said the pledges “need to be accompanied with clarity on how the finance will be maintained for generations,” especially now that the fund will be filled through voluntary contributions.
The fund will be hosted by the World Bank for the next four years and the plan is to launch it by 2024. A developing country representative will get a seat on its board.
A number of industrialized nations have insisted that all countries should contribute to the fund, and the agreement will prioritize those most vulnerable to climate change — even though any climate-affected community or country is eligible.
The U.N. weather agency announced Thursday that 2023 is all but certain to be the hottest year on record — and trend lines are worrying. A study earlier this month found that 7.3 billion people — or 90% of humanity — endured at least ten days of high temperatures over the last year.
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Arasu reported from Bengaluru, India. AP reporter Seth Borenstein in Dubai, United Arab Emirates, and Gaurav Saini of the Press Trust of India contributed to this report
