At COP28, which got underway today in Dubai, United Arab Emirates, the Loss and Damage Fund has just gone into operation.
The Loss and Damage Fund is a mechanism for rich countries to reimburse poor countries for damages incurred, as these countries are more susceptible and frequently experience greater effects from climate change.
After years of discussion, the decision to create a loss and damage fund was decided at COP27 in Egypt last year.
“While this is a historic moment, there are still important issues that need to be resolved,” stated Harjeet Singh, Climate Action Network International’s Head of Global Political Strategy.
Under the pretence of guaranteeing a prompt response, wealthy nations have lobbied for the World Bank to house this fund, he continued.
However, wealthy countries have also made an effort to lessen their financial responsibilities and have opposed the establishment of a precise scale for cash mobilisation. The Fund’s long-term viability is seriously questioned in the lack of a clear replenishment cycle.
Therefore, to guarantee a significant COP28 outcome, a strong mechanism that is connected with the Global Stocktake process and the new climate financing target is required.
The wealthy countries now bear the burden.
“Due to decades of fossil fuel consumption and a lack of sufficient climate finance provided to the Global South, they must fulfil their financial obligations in a manner commensurate with their role in the climate crisis.”
Landry Ninteretse, Director of 350.org for Africa, also responded to the development by saying, “The move towards operationalizing the Loss and Damage fund is a promising start to the climate talks.” Due to the urgency of the climate issue, we must act quickly to put this into practise and work towards providing funding to the communities in the most climate-vulnerable areas that continue to suffer the brunt of the catastrophe. It’s time for individuals who have historically contributed to the climate catastrophe to make amends and provide justice to those who have been disproportionately harmed by their use of fossil fuels.
