How was the Loss and Damage Fund a milestone in climate action?

How did the Loss and Damage Fund represent a milestone in climate action?

It is no secret to anyone interested in climate affairs that adopting the concept of “losses and damages” and applying it on the ground is a kind of fantasy. Some people even consider this impossible to happen. However, at the recent climate summit in Sharm El-Sheikh “COP27” she admitted The officially participating countries - after long discussion sessions - need to secure the necessary financing to address the losses and damages associated with climate change. To then agree to establish a “Loss and Damage” fund.

Loss and damage is a policy concept that supports vulnerable developing countries that suffer significant losses and damage due to climate change. This concept supports the idea that the richest and most developed countries are responsible for the effects of climate change on the poorest and most affected countries.

The establishment of the Loss and Damage Fund is therefore a noteworthy achievement among vulnerable developing countries and communities - those on the front lines of climate change who have been demanding funding for decades; In order to confront the devastating effects resulting from climate change.

InEast Africa - for example - about 40 million people suffer from hunger caused by climate change. On the other hand, floods cause damage and economic losses estimated at billions of dollars, and also cause the displacement of tens of millions of people around the world, not to mention the burning of forests, a phenomenon that has begun to increase coinciding with global warming. To threaten many species, and kill thousands of people.

Loss and damage in the eyes of the world

It was remarkable how quickly the debate on loss and damage turned. First proposed more than 30 years ago, this principle was a red line among many countries that had refused to even discuss it during these decades. It was reiterated the year before last, atCOP26 in Glasgow, where the Global North (countries) opposed The developed and rich) called on the Group of 77 and China to obtain financial facilities designated for losses and damages.

For many developing countries, the agreement to establish a loss and damage fund heralded a new era of climate action and international negotiation. The recent devastating floods in Pakistan and the protracted drought in the Horn of Africa - and the resulting devastating food crisis - have heightened the severity of climate-related losses and damage, and this has also increased the urgency and pressure on developed countries; In order to ratify the establishment of a fund for losses and damages at “COP27”, despite this, the countries did not agree to include financing losses and damages in the official agenda until a few days before the start of the summit.

At the start of COP27, most leaders of developed and developing countries spoke of the importance of addressing the losses and damages caused by climate change. In the first week of negotiations, seven developed countries - Germany, the United Kingdom, Scotland, New Zealand, Belgium, Austria and Canada - showed their solidarity, pledging approximately US$275 million to finance losses and damages, most of which will go to the “Global Shield” initiative against climate risks, an initiative launched by the Group of Seven (G7) countries and the Group of 20 most vulnerable countries. (V20) in “COP27”.

If activists and civil society groups had allied with developing countries to demand funding for losses and damage, attention did not arise around this claim until days before the end of the twenty-seventh Conference of the Parties (COP), and then the agreement seemed viable. The main motivating factor was the European Union acting as a mediator; To bring viewpoints closer together, by proposing a financing model that gives the most vulnerable groups top priority.

Responding to a number of concerns

In an unexpected historical precedent, countries officially acknowledged that current financing arrangements for loss and damage are insufficient, and that the need for urgent financing is inevitable. To help developing countries that are particularly vulnerable to climate change. In response, countries agreed to two important, related issues: the establishment of a “Loss and Damage Fund,” and the other: work on “new financing arrangements.” While these issues appear to differ only in name, they respond to different concerns.

First- The decision to establish the Loss and Damage Fund - which forms part of the United Nations climate architecture - responds to many of the calls ofdeveloping countries; To obtain a dedicated financing mechanism implemented by developed countries, given that the latter are more responsible for historical greenhouse gas emissions. However, it should be noted here that the decision did not specify which countries must contribute to this matter, nor did it link the provision of financing to the historical legacy of emissions for each country.

Second- The decision to establish new financing arrangements is a necessary response to address losses and damages, as new financing arrangements need to provide easy and quick financing; Rehabilitation and recovery, reconstruction in the wake of climate-related disasters, and addressing the long-term impacts of critical events - such as sea level rise - are two areas not focused on by current funding arrangements.

While the details of the new fund - nor the new financing arrangements - were not determined, the countries agreed to activate both decisions in the upcoming climate negotiations “COP28” in Dubai.

Challenges on the horizon

If “COP27” has achieved significant progress in the file of financing losses and damages, the real test will be limited to the ability of these countries to agree on the details. In other words: who will pay, who will receive financing, and what types of losses and damages will be eligible for financing? After decades of avoiding these discussions, reaching consensus on the details of the Casualty Fund - as well as on the damages and new financing arrangements in “COP28” - will not be easy.

Determining who will pay will be a challenge on a number of fronts; For example, developed countries continue to fail to fulfill their commitments to provide $100 billion annually in climate financing, a commitment approved by the Paris Climate Summit in 2015. In addition, many developed countries are facing recession, large budget deficits, and multiple cost-of-living crises, all of which limit the political and social environments that allow for financing. external, as well as a narrow focus on domestic economic recovery; An attempt to overcome the current crisis that the whole world is experiencing.

Add to the above, that althoughdeveloped countries - such as the United States - have agreed to establish the fund, it is not clear whether they will provide the necessary funding or not, especially since they have long-standing fears that suggest to them that financing losses and damages would be considered an acceptance of legal responsibility for the effects of their devastating emissions in previous decades.

Another challenge is the calls of some developed and developing countries to expand the donor base; To include developing countries with high cumulative emissions, such as China and India.

Although history will remember “COP27” as a landmark climate summit - given the agreement to establish a loss and damage financing fund - this should not overshadow the fact that we have seriously deviated from achieving the goal of the Paris Agreement, which is to limitglobal warming to 1.5 degrees or less than two degrees, Compared to pre-industrial revolution levels.

The world is already witnessing many devastating effects resulting from climate change, and is now on the threshold of irreversible losses and damage. Therefore, urgent collective action to reduce emissions and build the capacity of vulnerable countries to adapt to climate change is crucial. In order to prevent catastrophic losses and damages in the future, it is better for us to prevent losses and damages instead of financing them. To preserve our planet.

The expected role of "COP28"

The upcoming climate summit in Dubai requires a strong global approach, prioritizing the well-being of humanity and addressingthe devastating effects of climate change. We need a quick and fair end to the use of fossil fuels, such as oil, gas and coal, which will represent a challenge no less difficult than approving the Loss and Damage Fund, and this is due to the international blocs that support fossil fuels, which are blocs that are distributed between national governments and major international companies.

COP28 must be a turning point, by recognizing the central role of fossil fuels in the climate crisis, and working to conclude an agreement to phase them out. In addition to this, there must be a significant increase in financial support from developed countries to developing countries; To transition to renewable energy.

Of course, the Loss and Damage Fund will be present at the Dubai summit, as the Fund needs huge funds. To help the poorest countries most affected by climate change. Despite this, financing alone cannot compensate for the catastrophic consequences caused by the climate crisis resulting from the continued use offossil fuels.

At the end of this article, we must emphasize that theLoss and Damage Fundmay need some time; So that he can perform the role expected of him. It - without a doubt - represented a milestone in the history of climate action, but - like many climate initiatives and agreements - the seriousness in implementation will determine whether the Fund is able to provide appropriate solutions, or whether it will remain a dead letter.