UNITED NATIONS: As the clock relentlessly counts down to the crucial United Nations climate negotiations set to commence in Dubai in just over 30 days, the international community finds itself mired in a contentious deadlock.
The bone of contention? The design of a fund aimed at helping countries recover and rebuild from climate change-induced damage. This fund, known as the “loss and damage” fund, is intended to address the irreversible devastation caused by climate-driven disasters such as droughts, floods, and rising sea levels.
A committee comprising representatives from two dozen countries was entrusted with the task of crafting a blueprint for this fund. The most recent meeting of this committee, held in Aswan, Egypt, extended into the early hours of a Saturday, leaving no stone unturned in the quest to find consensus. Nevertheless, deep fissures remain, primarily centered around three critical questions: who should oversee the fund, who should bear the financial burden, and which countries are eligible to receive funding.
The creation of the “loss and damage” fund marked a significant milestone at COP27 in Sharm el-Sheikh, Egypt, last year. It was seen as the first UN-backed initiative specifically dedicated to addressing the inescapable climate-induced destruction. However, the current impasse threatens to cast a shadow over the COP28 UN summit slated to begin in Dubai on November 30.
The issue that looms large is who should be the steward of this fund. Developed countries, particularly the United States, have been advocating for the World Bank to host the fund. In contrast, developing nations have passionately advocated for the establishment of a new UN body to manage the fund.
The proponents of housing the fund at the World Bank argue that it offers several advantages, including its well-established financial infrastructure and global reach. However, developing countries contend that placing the fund under the aegis of the World Bank would skew the power dynamics, giving donor countries an undue influence, and could potentially result in high fees for countries seeking assistance.
Cuba’s UN Ambassador, Pedro Pedroso Cuesta, who chairs the G77, a group of developing nations along with China, emphatically stated that the creation of a “new independent entity” to administer the fund is the core of their position. This sentiment is shared by many developing countries, who argue that a more impartial and equitable approach is necessary to address the unique challenges they face.
As the deadlock persists, the fate of the “loss and damage” fund hangs in the balance. The urgency of the matter cannot be overstated, as it has the potential to significantly impact the COP28 negotiations. The global community, now more than ever, faces the daunting task of finding common ground and forging a path forward in the face of an ever-pressing climate crisis.
In response to the criticisms and concerns voiced by developing countries, a spokesperson for the World Bank expressed their commitment to the process and willingness to work with countries once an agreement is reached on how to structure the “loss and damage” fund. This underscores the pressing need for a resolution that bridges the existing divide and paves the way for effective climate action and support to those who need it most. The coming days leading up to the crucial climate negotiations in Dubai will undoubtedly be filled with intense deliberations, as the world watches and hopes for a consensus that puts the planet’s future first.
