COP27: $100 bn Loss & damage fund for developing countries approved

SHARM EL SHEIKH, Egypt: In a video message issued from the conference, António Guterres, Secretary-General of the United Nations, said, “This COP has taken an important step towards justice. I welcome the decision to establish a loss and damage fund and to operationalize it in the coming period.”

In the annual meeting of the United Nations Framework Convention on Climate Change, often referred to as the 27th Conference of Parties (COP27), developing countries have been continuously pressing to establish a loss and damage fund as they are most vulnerable to climate change caused disasters even though they have little contribution in this climate crisis.

When the delegation failed to come to an agreement on Friday, November 18, COP27 was extended by a day. Later on Saturday, the negotiators agreed on several proposals, including a loss and damage facility- a financial support structure for the most vulnerable countries by 2023.

Bhupender Yadav, Minister for Environment, Forest and Climate Change, Government of India, welcomed this decision to create a loss and damage fund and called COP27 a “historic COP”.

On one end, essential decisions such as loss and damage fund were agreed upon, but on the other, there was little to no movement on other key issues such as phasing out fossil fuels and strict compliance to limit global temperature rise within 1.5 degrees Celsius.

COP27 saw the participation of over 35,000 people, including government representatives and other civil society organisations. Highlights of the conference include launching the first report prepared by the High-Level Expert Group on Net-Zero Emissions Commitments of Non-State Entities. Apart from that, an ‘Executive Action Plan for the Early Warning for All’ initiative which would need an investment of around $3.1 billion between 2023 and 2027.