Historic breakthrough as COP28 opens with launch of Loss and Damage Fund
By Ndi Eugene Ndi
The 28th Conference of the Parties of the United Nations Framework Convention on Climate Change (COP28) opened on Thursday November 30 in Dubai, the United Arab Emirates with a historic breakthrough for developing nations that are hardest-hit by the unavoidable impacts of climate change.
Global delegates to the summit formally adopted the decision for the establishment of the Loss and Damage Fund – a global financial package to ensure the rescue and rehabilitation of countries facing the cascading effects of climate change.
Parties had agreed to establish the fund at the COP27 in Sharm el-Sheikh in Egypt last year and the announced operationalization this year, described as “unprecedented” by COP28 president Dr Sultan Ahmed Al Jaber at the opening ceremony was greeted with a standing ovation.
It has also been described by advocates as a huge win for the COP28 presidency on the opening day of the conference as it is the first time such a decision has been reached on the first day of the climate talks.
“This is an historic achievement,” said Joe Thwaites, senior advocate for International Climate Finance at Natural Resources Defense Council (NRDC), a U.S.-based environmental advocacy group. “All wealthy and high emitting countries now have a responsibility to step up and contribute to the fund,” he said.
Some countries made pledges to the fund immediately the announcement was made. COP28 host, the United Arab Emirates $100 million same like Germany. The United Kingdom pledged £40 million to the Fund “and £20 million for other funding arrangements for loss and damage” according to a statement. The United States of America and Japan respectively committed $17 million and $10 million as the European Union (including Germany) pledged €225 million.
Big win for vulnerable countries
The former President of Malawi Joyce Banda, said the establishment of the Loss and Damage Fund is a big win for vulnerable countries, especially those in Africa that contributed little to the climate crisis.
“It is a step in the right direction for countries like Malawi that have suffered extreme losses due to cyclones that killed more than 500 and displaced half a million others just this year,” she said.
The World Bank will be the interim host of the fund for a period of four years, and advocates say money from the fund should be given to beneficiary countries in the form of grants and not loans.
“This support should be in the form of grants rather than loans that risk further indebting these economies. It needs to go beyond commercial insurance provisions, which can fail in the face of recurring and widespread disasters,” said Ulka Kelkar, Executive Director, Climate at World Resources Institute India.
More pledges to the Loss and Damage Fund are expected in the course of the two week climate conference that spans December 12.
Work far from over at COP28
While the operationalization of the Loss and Damage Fund is being celebrated across the board, it is just one of many outcomes that delegates to the climate conference expect.
“The work is far from over. After the gavel drops at COP28, we cannot rest until this fund is adequately financed and starts to actually alleviate the burden of vulnerable communities. Success starts when the international community can properly support the victims of this climate crisis, with efficient, direct access to the finance they urgently need,” said Ambassador Pa’olelei Luteru, chair of Alliance of Small Island States (AOSIS).
More announcements expected
Talks during the rest of the days at the COP28 will include negotiations and/or announcements regarding a just transition framework from fossil fuels and climate mitigation and adaption, according to the agenda that was adopted without objections on Thursday.
Mohamed Adow, Founder and Executive Director of Nairobi-based Energy and Climate Think Tank, Power Shift Africa said the promise by rich nations to double adaption finance made at COP26 in Glasgow was still being awaited, and this is one of the areas he expects to see progress at COP28.
Another area the advocate expects to see progress in at COP28 is Just Transition.
“It’s clear the world needs to undergo an urgent transition from dirty to clean energy. But this can’t be a reckless or thoughtless shift, it needs to be done fairly,” Adow said. He called on countries “that have caused the most harm and have the greatest wealth, must do more and do it quickly”.
The idea of a just transition is often only used in relation to workers in heavily polluting industries, usually in the global north. “But we need to broaden this meaning and ensure a just transition for the world,” Adow said.
Taking place at Expo City in Dubai, COP28 is expected to convene over 70,000 participants, including heads of state, government officials, international industry leaders, private sector representatives, academics, experts, youth, and non-state actors from November 30 to December 12.
