COP28: Loss and Damage fund operationalised to support vulnerable nations; Germany pledges $100 million

New Delhi: The United Nation’s COP28 climate conference on Thursday formally operationalised a “loss and damage” fund sought by vulnerable nations devastated by climate change and global warming.

“We have delivered history today,” the UAE’s COP28 president Sultan Al Jaber said at the plenary session, adding that his country was committing $100 million to the fund.

“The first time a decision has been adopted on day 1 of any COP. And the speed in which we have done so is also historic” he added.

Al Jaber said “This is evidence that we can deliver. COP28 can deliver. And colleagues, this now sets a clear ambition for us to deliver a comprehensive GST decision over the next 12 days.”

“This sends a positive signal of momentum to the world and our work,” Mr. Jaber said.

During the session, German Development Minister Svenja Schulze (SPD) announced that Germany would contribute $100 million.

“We need to move from words to action. This is why today, UAE & Germany declared to stand ready to kickstart the new fund for responding to Loss And Damage with 100 million US-$ each” she added in her initial remarks.

Union Environment Minister Bhupemder Yadav welcomed the decision, and said, “A positive signal of momentum from COP28 in UAE on the first day itself”

Mr Yadav said, “Landmark decision on the operationalization of the Loss and Damage Fund was adopted in the opening plenary of COP28…adding that India strongly supports the decision to operationalize the Loss and Damage Fund”.

At the 27th UN Climate Change Conference (COP27) at Sharm El Sheikh, the world leaders created a new fund, (Loss and Damage Fund) in which countries responsible for high carbon emissions will compensate vulnerable countries suffering from climate impacts.

Loss and Damage fund was the most contentious issue at the conference and has been a long-running demand by developing countries since 1992.

The EU and the US refused demands from poor countries for a new fund to address loss and damage, arguing that existing funds should be redirected for the purpose.

The United Nations in its “Adaptation Gap Report 2023” mentioned that the current adaptation finance gap is now estimated to be US$194-366 billion per year.

The agency said despite pledges made at COP26 in Glasgow to double adaptation finance support to around $40 billion per year by 2025, public multilateral and bilateral adaptation finance flows to developing countries declined by 15 per cent to around $21 billion in 2021.