A momentous UN COP27 climate summit hit turbulent waters as deliberations over establishing a fund to aid nations grappling with the ravages of global warming unraveled in the early hours of Saturday.
The conflict between affluent nations and emerging economies in the extended three-day discussions foreshadows a challenging UN COP28 climate summit slated for next month in Dubai.
The proposal to create a “loss and damage fund” was a significant highlight at the previous COP27 UN climate summit in Egypt. Developing countries enthusiastically hailed the plan to support “particularly vulnerable” nations. However, nearly a year of intense negotiations among countries about how to operationalize the fund culminated in the fourth round of talks in Aswan, Egypt, ending in disagreement regarding funding, location, and eligibility for support.
This failure to reach an agreement places added pressure on the upcoming COP28 summit, which is already loaded with a substantial agenda. This includes assessing how countries are addressing climate change and establishing goals to help governments adapt to the challenges of global warming.
Preety Bhandari, senior adviser at the World Resources Institute, emphasized, “Whether or not the loss and damage fund becomes fully operational is a key measure of success for the COP28 summit.”
Sultan al-Jaber, president-designate of COP28, fervently encouraged nations to reach a consensus, with the talks extending into the overnight hours. Following the collapse of the talks, COP28 announced plans for another round of negotiations in Abu Dhabi early next month.
The outcome in Abu Dhabi is crucial, as Bhandari noted, “If the members of the 24-person transition committee cannot reach common ground…we are destined for very rocky negotiations in Dubai.” The success of the entire COP28 summit hinges on addressing developing countries’ priorities regarding funding for loss and damage.
Jaber underscored the importance of an agreement on the fund, stating, “The eyes of the world are on the committee members. Billions of people, lives, and livelihoods vulnerable to the effects of climate change depend upon the successful delivery.”
This tumultuous week saw the group of 77 developing economies plus China nearly exiting the talks over a fundamental dispute concerning the World Bank’s role in hosting the fund.
While the G77 and China initially opposed the World Bank’s leadership, talks on Friday seemed to pivot toward the lender assuming a leading role. However, discussions floundered yet again, this time due to discord over fund capitalization.
In the wake of a summer marked by shattered climate records and profound human and environmental losses, developed nations, primarily led by the US, appear reluctant to bear the responsibility of capitalizing a fund to aid climate-vulnerable regions. Although developed countries played a substantial role in historical greenhouse gas emissions responsible for global warming, they are seemingly reluctant to shoulder the funding responsibilities for coping with the consequences.
US climate envoy John Kerry has previously argued that China, as the world’s leading annual polluter, and Saudi Arabia, the world’s largest oil exporter, should also contribute more significantly to financing the fund. Kerry has advocated for reform within the World Bank to facilitate greater funding for less affluent nations.
