Developing Countries Propose $100 Billion Climate Fund at U.N. COP28 Summit
Developing countries have proposed the establishment of a new U.N. fund that would unlock at least $100 billion by 2030 to address irreversible damage caused by climate change. The fund, known as the “loss and damage” fund, would be the first of its kind dedicated to addressing climate-fueled droughts, floods, and rising sea levels. The details of the fund will be discussed at the U.N. COP28 climate summit taking place from November 30 to December 12 in Dubai.
Proposal for the Climate Damage Fund
Last week, developing countries, including those in Africa, Latin America, Asia-Pacific, and small island states, proposed that the climate damage fund should program at least $100 billion by 2030. The proposal states that this amount should be considered a minimum and should provide a safety net for countries that are overburdened by climate impacts and lack the capacity to cope.
Challenges and Controversies
While countries agreed to the establishment of the fund last year, the most contentious decisions, including which countries will contribute to it, were postponed. At the upcoming COP28 summit, unanimous backing from the nearly 200 attending countries will be required to make any decisions.
Wealthy nations, expected to contribute to the fund, have a different stance. The United States and European Union, who had previously resisted climate damages funding, are now at odds with developing countries over which nations should pay into the fund and who should receive support.
Small Island States’ Concerns
Small island states, among the countries most vulnerable to climate impacts, argue that all developing nations should be eligible to receive support. However, they emphasize the need to ensure that small, highly vulnerable communities are not sidelined by the demands of bigger nations.
Differences in Perspectives
The U.N. definition of developed countries that should contribute to climate finance does not include major economies like China and high wealth-per-capita nations like the United Arab Emirates, which is the President of this year’s UN climate summit. Wealthy nations propose a more targeted fund that focuses on developing countries that are particularly vulnerable.
Regarding the funding sources, the United States proposes attracting cash from governments, the private sector, philanthropies, and new “innovative sources.” However, there are differences of views among countries on which countries should pay.
Unfulfilled Pledge and Mistrust
Wealthy nations’ failure to meet their 2009 pledge to provide $100 billion per year from 2020 in climate finance to poorer nations has fueled mistrust and resentment among the latter. This broken promise adds to the challenges faced by poor nations, who are being called upon to reduce their CO2 emissions but struggle to raise the necessary funds.
The proposal for a $100 billion climate fund to address irreversible damage caused by climate change will be discussed at the upcoming U.N. COP28 summit. Developing countries are pushing for the fund to be established and programmed by 2030, while wealthy nations have differing perspectives on which countries should contribute and who should receive support. The discussions at the summit will be crucial in determining the future of the fund and addressing the urgent needs of countries facing climate impacts.
Reporting by Kate Abnett; editing by Richard Valdmanis, Alexandra Hudson
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