Rosalind Evans
At the COP28 climate summit in Dubai, a landmark decision was made to adopt a long-awaited damage fund designed to aid nations most affected by the climate crisis. This decision, announced by COP28 President Sultan Al Jaber, marks a significant achievement, hailed as “delivering history” on the summit’s first day. However, the fund’s launch has been subject to controversy. The United States, in particular, has faced criticism for its perceived insufficient contribution, a mere fraction of what other nations have pledged.
The fund’s inception, culminating in years of negotiations, aims to channel financial assistance to developing countries grappling with the impacts of climate change. This breakthrough was formalized after preliminary agreements in a pre-COP meeting, setting a positive tone for further discussions at the summit.
Despite unanimous agreement on the fund’s necessity, debates arose over the World Bank’s role in managing it, primarily due to its strong ties to the United States. Eventually, a consensus was reached to allow the World Bank’s temporary oversight.
Promptly after the fund’s approval, various countries made substantial pledges. The UAE and Germany each committed $100 million, while the UK announced a £60 million contribution, albeit with a portion allocated for other purposes. The United States pledged $17.5 million, and Japan contributed $10 million.
Climate experts and advocacy groups have widely praised the fund’s establishment as a crucial first step. Ani Dasgupta of the World Resources Institute highlighted its significance as a lifeline for those in dire need due to climate disasters.
However, the US’s contribution has sparked widespread criticism. Ani Dasgupta and Mohamed Adow of Power Shift Africa have openly expressed disappointment in the US and Japan’s contributions, deeming them insufficient given their economic stature. Tom Evans from E3G pointed out the political complexities faced by the US delegation, particularly the apprehension about labelling the funds as ‘loss and damage’ due to domestic political pressures.
Establishing the climate damage fund at COP28 represents a milestone in climate action and a catalyst for further debate. The fund’s creation offers hope as nations navigate through complex issues like fossil fuel usage and carbon capture. It underscores the urgency of global cooperation and the need for equitable contributions to address the escalating impacts of climate change. The world now watches as this fund evolves into a pivotal tool for climate justice amidst ongoing debates and diverse national interests.
