The sun has set on the first day of COP28 in Dubai and the big news of the day was that nations have finally agreed on the details to implement the Loss and Damage fund, designed to support vulnerable countries dealing with the material effects of climate change.
This follows the landmark agreement made at COP27 which many saw as the culmination of decades of pressure from developing countries and other climate-vulnerable nations. Indeed, the effects of climate change disproportionately impact indigenous and first nations peoples and those in developing countries.
Among the contributors this year, the UAE have pledged $100 million, the EU $245 million, and the UK $76 million. The US, however, pledged just $24 million which has been met with criticism, though even this is a step forward from last year when Biden’s climate envoy John Kerry firmly stated that ‘under no circumstances’ would the US pay ‘climate reparations’, rejecting any suggestions of liability. The US is not alone in this view however; all contributions have been made on the grounds that loss and damage is ‘not a basis for liability or compensation’.
Also on the agenda today was the new $30 billion ‘global climate solutions’ fund, established to “bridge the climate finance gap”, according to the UAE’s president Mohammed bin Zayed Al Nehyan. The president has said he hopes the fund will raise $250 billion by 2030. According to a statement, Asset managers BlackRock, Brookfield and TPG are launch partners, while COP President Sultan Al Jaber will chair the fund. It said the fund "will drive forward international efforts to create a fairer climate finance system, with an emphasis on improving access to funding for the Global South."
In news close to our hearts here at EA, King Charles III III also took to the stage, reminiscing on the 2015 Paris Agreement which he described as "A landmark moment of hope and optimism, when nations put differences to one side for the common good”. Central to the King’s visit was his launch of the Business & Philanthropy Climate Forum (BPCF Forum), which will see more than 1,000 CEOs and philanthropists across the globe convene to accelerate and scale private-sector investment and innovation towards net zero and nature positive goals. In reference to the fund, COP President Dr Sultan Al Jabar said ‘no single party has all the solutions, and COP28 must bridge the trust gap between North and South, East, and West, and build a platform for action through partnership.” This is an exciting step for the Private Sector, whose role in the fight against climate change is for the first time being acknowledged on the global stage.
Stay tuned for more updates!
Natasha Jacobs - ESG Consultant, Earth Active
