Full blown coup to improve expectations for the Dubai summit (United Arab Emirates). The 28th UN climate change conference (COP28) adopted, in its opening session, its first relevant agreement: the launch of the loss and damage fund, aimed at helping the most vulnerable countries repair the damage caused by extreme events. of climate change.
The decision took place in the Al Hairat plenary at the Expo City Dubai conference center during the opening ceremony of the climate summit, which installed Ahmed al Yaber, CEO of the Abu Dhabi National Oil Company, as president of COP28 ( Adnoc, for its acronym in English).
"Today we have made history. It is the first time that a decision has been taken on the first day of any COP. And the speed with which we have done it is also historic," commented Al Yaber.
At last year's summit, in Sharm el Sheikh (Egypt), the countries agreed to launch this financial mechanism, although they left it to a transition committee to launch the recommendations to specify the details of its operation.
Much progress has been made regarding the characteristics of this fund and various extremes are emerging. Given the lack of consensus on one of the most controversial points of its operation - where it will be housed, who it will depend on - the committee has decided that the World Bank will house it provisionally.
This proposal, however, was not viewed favorably by representatives of countries from the Global South and by civil society groups, who demanded that the fund be independent of the World Bank, as they distrust this institution.
In any case, the World Bank will be the interim host for a period of four years, and the fund will have an independent secretariat with developed and developing countries represented.
It has been agreed that the fund should raise “at least” $100 billion a year by 2030, although developing countries say real needs exceed that figure and are closer to $400 billion annually.
Payments to the fund will be voluntary and the text states that developed countries will be “invited,” not obligated, to contribute.
All developing countries can directly access the fund's resources, with a minimum percentage allocation for the least developed and small island developing states.
The fund is off to a good start, with the first official commitments to make contributions from some states considered to be historically most responsible for the climate crisis.
Shortly after being adopted, the first contributors were made known: Germany, the United Arab Emirates, the United States, Japan and the United Kingdom.
The United Arab Emirates and Germany have each promised to contribute $100 million to the new fund, while the United Kingdom has assured that it will allocate £40 million and another 20 million to other financing mechanisms for loss and damage.
The US, for its part, has claimed that it will contribute 17.5 million to the fund, and that it will also donate 4.5 million dollars to the Pacific resilience mechanism, and another 2.5 million and a half to the network. of Santiago for its implementation.
These are all "key elements of the broader mosaic of support for vulnerable countries and communities as they confront and respond to the impacts of the climate crisis," according to US special climate envoy John Kerry.
Japan promises 10 million dollars and the EU, 250 million (including Germany)
Through the pact reached, rich countries have pressed for the World Bank to host this fund with the argument that it will guarantee a rapid response. And, on the other hand, from the perspective of NGOs and the nations of the Global South, they have diluted their financial obligations by not defining quotas with equity criteria to mobilize these funds.
Pa'olelei Luteru, President of the Alliance of Small Island States (AOSIS), stated: "The work is far from over and, although it has accelerated, we will not be able to rest until this fund is adequately funded and begins to truly alleviate the burden of vulnerable communities. Success will begin when the international community can adequately support the victims of this climate crisis, with direct and effective access to the financing they urgently need.”
"This is a historic achievement. The loss and damage fund will provide urgent aid to vulnerable communities living on the front lines of the climate crisis that they have done little to cause. All rich, high-emitting countries have now contributed to All rich, high-emitting countries now have a responsibility to step up and contribute to the fund," said Joe Thwaites, climate finance officer at the Natural Resources Defense Council (NRDC).
Tracy Carty, global policy expert at Greenpeace International, commented that it represents “a fundamental first step” for “the communities that have had the least responsibility in causing the climate crisis.”
However, Carty stressed that it is "a fund that falls short of what they really need and deserve."
Greenpeace indicated that it remains to be determined where the money will come from: whether it will only come from rich countries or whether the fossil fuel industry (oil, gas and coal) will also be forced to contribute. “We cannot leave COP28 with a damage and loss fund empty-handed,” he added.
The executive secretary of the Climate Change Convention, Simon Stiell, noted that humanity is taking “baby steps” in climate action and that 2023 will end up being “the hottest year” ever recorded.
“Many terrifying records were broken. We are paying with people's lives and livelihoods. “We are on the edge of a cliff,” she commented.
Stiell pointed to the central axis of the Dubai debate: "if we do not point out the terminal decline of the fossil fuel era as we know it, we will be welcoming our own terminal decline. And we choose to pay with people's lives," he warned.
"Science tells us that there are about 6 years left before we exhaust the planet's capacity to cope with our emissions before we exceed the 1.5ºC limit," Stiell has warned.
The president of the climate summit, Ahmed al Yaber, predicted that the final declaration of that conference will include a mention of fossil fuels (oil, gas and coal) although he did not clarify in what sense.
Al Yaber made this consideration at the opening ceremony of COP28, where he stressed that “science has spoken clearly and forcefully” about the need to limit global warming to 1.5ºC with respect to pre-industrial levels.
“In the world we have reached a crossroads,” he noted, before adding: “Now is the time to act.” Therefore, he addressed the diplomats with these words: “Let's get to work, work efficiently, agree on the program and please move quickly on the text. There is no time to lose".
