Impact at the summit in Dubai (United Arab Emirates). Countries have taken the first steps to compensate countries most affected by extreme climate events. The 28th UN climate change conference (COP28) adopted yesterday, at the opening session, the creation of the loss and damage fund, intended to repair the damage caused to the most vulnerable nations.
"Today we made history, and on the first day of the conference", said exultant Ahmed al-Jabir, executive director of the Abu Dhabi National Oil Company (Adnoc, by its acronym in English). Al-Jabir presented the agreement as a great victory for his presidency after his suitability to lead these negotiations had been questioned.
At last year's summit, in Sharm al-Sheikh (Egypt), the countries agreed to launch this financial mechanism, but left it to a committee of experts to specify the operational details, and the latter have known now
The fund for losses and damages will fall under the orbit of the World Bank. It is a solution that was not well seen by the representatives of countries of the Global South, who demanded that the fund be independent. But it has been considered the least bad solution. The World Bank will be the interim host for a period of four years.
The fund should raise "at least" $100 billion a year by 2030, although developing countries say actual needs are closer to $400 billion a year.
Country contributions will be voluntary and developed nations will be “invited” to contribute, but not obligated. In addition, all developing countries will be able to access the resources directly, with a minimum percentage allocated to the least developed and small island developing states.
Various civil society groups wanted rich countries to contribute according to their responsibility for historical emissions. But that has been ruled out. This criterion would put the US in danger of having to assume most of it. Quotas are not established according to equity scales based on "historical responsibility" for warming. As a counterpart, China, India, South Korea and other emerging economies, and petro-states such as Saudi Arabia or Russia, avoid the obligation of having to shoulder it.
The birth of the fund was accompanied by the first commitments. The United Arab Emirates and Germany have each pledged $100m to the new fund, while the UK has pledged £40m. For its part, the United States has alleged that it will contribute 17.5 million. Japan promises 10 million dollars, and the EU, 250 million (including Germany).
This fund opens the door to other future additional funding formulas, such as a passenger tax, a shipping charge or a fossil fuel windfall tax.
Mohamad Adhow of Power Shift Africa, an expert group on climate issues, described the initial pledges as insufficient and said they will be "a drop in the ocean" compared to the needs. "The work is far from over; we will not be able to rest until this fund is properly funded and begins to really ease the burden on vulnerable communities," said Pa'olelei Luteru, president of the Alliance of Small Island States.
For many organizations, this is a historic achievement, as it will provide urgent help to the most vulnerable communities who live on the front lines of the climate crisis and who have contributed least to causing it. "All rich, high-emitting countries now have a responsibility to step forward and contribute to the fund," said Joe Thwaites, head of funding at the Natural Resources Defense Council.
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" on record. Stiell pointed to the central thrust of the Dubai debate: “If we do not signal 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."
Ahmed al-Jabir predicted that the final statement of the conference will include a mention of fossil fuels (oil, gas and coal), but did not clarify in what sense. Al-Jabir stressed that "science has spoken clearly and forcefully" about the need to limit global warming to 1.5ºC compared to pre-industrial levels. "It's time to act", he said. And he addressed the diplomats: "Let's thread the needle, work efficiently, agree on the program and, of course, move quickly on the text. There is no time to lose."
