Western nations, most notably European nations, are encountering a progressively exacerbated sentiment of exasperation as they hasten to finalize discussions on loss and impairment prior to the 28th United Nations Climate Change Conference (COP28) in Dubai, scheduled for November. An estimated sum exceeding 10 billion US dollars, constituting approximately half of the committed finances, is contributed by France, Germany, and the United Kingdom to the Green Climate Fund. This United Nations initiative aims to offer economic assistance to aid developing nations in their efforts to adjust to the adverse effects of climate change.
On September 11, the United Kingdom committed a historic amount of 2 billion US dollars to the fund. Nevertheless, developing nations are asserting that Western nations ought to increase their financial contributions and offer economic compensation for the calamities brought about by climate change. They argue that Western nations, being predominantly responsible for the greater share of global carbon dioxide emissions throughout history, bear the burden of this historical liability.
During COP27 in December last year, countries that were considered vulnerable, such as Pakistan, effectively advocated for transparent deliberations on the Loss and Damage Fund, given the significant loss of life experienced by the nation through devastating floods that claimed 1,700 lives. Nevertheless, the phrasing employed at that time in relation to the formation of "novel financial arrangements" lacked precision.
There still exist contrasting viewpoints regarding the approach to counteracting the detrimental repercussions of climate change. Certain individuals contend that the fund should provide compensation for economic detriments, whereas others advocate that the fund should solely be utilized to alleviate the adverse consequences of climate change.
There are suggestions from certain sources within the European Union that the depiction of the fund as a "global ATM" is inaccurate, as it insinuates that any nation claiming to be a developing country can obtain restitution for climate change-induced losses.
At present, representatives from multiple nations are in attendance at the 78th session of the United Nations General Assembly (UNGA) in New York and are exerting efforts to achieve a consensus during a meeting jointly organized by the United Arab Emirates and Egypt. The Ministry of Energy Transition in France perceives this as the ministers' final opportunity to address this matter prior to the overshadowing of COP28. France and other Western nations are endeavoring to persuade influential developing countries such as China and India to contribute to mitigating climate-related calamities.
According to a representative of the French Ministry of Energy Transition, it is their belief that developing nations should actively contribute to resolving the climate crisis, as they too are contributors to the problem. The source underscored the importance of fairness, stating that it is unjust for certain countries to consistently shoulder the financial burden of addressing all climate-related matters.
International climate negotiators, such as Maroš Šefčovič of the European Union and Agnès Pannier-Runacher, the French Minister of Energy Transition, will be in attendance at the meeting. Developing countries are estimated by the United Nations to bear a cost of $700 billion annually due to climate change, with this figure expected to double by 2030 at the very least.
A source from the French Ministry of Energy Transition indicated that developed nations are keen on avoiding the establishment of a new climate fund and contend that any compensation mechanism should be incorporated into existing frameworks. The source further clarified that the objective is not solely focused on creating a fresh fund, but rather, it should be an integral component of an inventive financing solution.
COP27 created a transitional committee tasked with deliberating on the implementation of the Loss and Damage Fund. This committee has already conducted three meetings and is scheduled to reconvene in Aswan, Egypt, in the upcoming month. The source from the French Ministry of Energy Transition underscored the significance of achieving tangible outcomes during this week's meeting in New York to ensure the committee wraps up its negotiations by next month. The source further expressed the goal of avoiding the overshadowing of crucial subjects such as climate adaptation and carbon dioxide emissions reduction by the issue of loss and damage, which had taken place during the previous COP gathering in Sharm El Sheikh.