COP28 okays $475 mn loss and damage fund

On the opening day of the United Nations Framework Convention on Climate Change, or COP28, the UAE has greenlit a crucial decision, making the loss and damage fund for developing nations operational. The European Union committed around $275 million, while the host, UAE, pledged an additional $100 million. Germany and the UK pledged $100 million and $75 million, respectively. The US will contribute $17.5 million and Japan has committed $10 million for the climate disaster fund. India welcomed the decision. “India strongly supports the operationalisation of the loss and damage fund. It is a landmark decision,”said environment minister Bhupender Yadav, who represented India at the meeting.

Earlier in the day, the International Monetary Fund’s managing director Kristalina Georgieva, said in an interview: “There has been progress in getting money for the loss and damage fund. It’s coming. How much, depends on the negotiations. However, it must not be less than $200 million.”

The fund was set up during COP27 at Sharm el-Shaikh in Egypt last year. The fund, a long-pending demand of developing economies will give financial assistance to countries recovering from climate disasters such as extreme weather events. It will also be used to deal with other climate-related emergencies such as sea-level rise, migration, and displacement.

During COP27, however, none had committed money for the fund. That said many aspects of the fund are yet to be finalized. At Sharm el-Shaikh, a transitional committee was set up to work on the details and submit its recommendations. It met several times throughout the year and made several recommendations.