2023-12-01 10:37:57
COP28 began with a vote confirming the establishment of a new specific fund on losses and damage linked to climate change. With this announcement, the UAE presidency hopes to provide the necessary momentum to make this COP a success.
This was a strong expectation from southern countries. During COP27 in Sharm el-Sheikh at the end of 2022, a transition committee was mandated to define the contours of the new fund dedicated to losses and damages linked to irreversible damage from climate change. And, a great feat, he managed to endorse a draft text on November 4 in Abu Dhabi. It was finally adopted on the first day of COP28 in Dubai by the signatory countries of the Paris Agreement.
This news surprised and delighted many actors, ranging from NGOs to nations directly concerned by the establishment of such a fund. “ It’s a remarkable day », Judge Avinash Persaud, one of the negotiators of the transition committee, representing the developing countries of the G77, and special envoy of the Prime Minister of Barbados Mia Mottley.
1/ A fund for what?
While countries’ contributions to the fund will remain voluntary, this adoption on the first day of the COP constitutes real progress. From now on, the fund’s board of directors will have to define the contribution and access rules. In the facts, “ cThe fund will provide access to financing to deal with slow-onset phenomena, such as rising sea levels or droughts, but also extreme phenomena such as cyclones or floods. », Shares Fanny Petitbon, head of advocacy for the NGO Care France.
2/ What is the monetary objective to achieve?
During this first day of COP28, the 200 million dollars necessary to capitalize the fund were raised. In particular, the United Arab Emirates and Germany have both promised to contribute up to $100 million to this fund. The UK pledged $75.9m (£60m), the US 17.5m and Japan 10m. Further announcements will take place on December 1 and 2 at the Climate Action Summit. But developing countries have high hopes from this fund which does not yet have an official objective. “This fund must be $100 billion per year”defends Avinash Persaud.
3/ Who will contribute to this new fund?
Industrialized countries, because of their historical responsibility, are urged to participate, but the text does not provide for any obligation. Other countries, such as China, Qatar, Saudi Arabia, South Korea, as well as other emerging countries are encouraged to do so on a voluntary basis.
If nothing has yet been decided, the text makes it possible to put in place a wide range of public, but also private, funding sources. “We want it to be a modern fund that can receive a wide range of sources: donations from governments, but also new sources of financing linked to greenhouse gas emissions, for example by taxing maritime, aviation, oil and gas emissions and financial transactions », shares Avinash Persaud. Philanthropic organizations and businesses might also contribute to the fund.
4/ A fund for whom?
The fund’s board of directors will be responsible for defining the events supported and the associated amounts. “ Once established, the board will decide on the eligibility criteria by deciding on a minimum percentage of funds allocated to least developed countries and small developing islands and avoiding over-concentration of funds. “, says Lola Vallejo, director of the Iddri climate program.
Other countries such as Libya, the Philippines and Pakistan, which are not among these most vulnerable countries, might also access it if, for example, a significant part of their GDP is affected following a climate disaster. These rules should see the light of day from 2024.
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