The Loss and Damage Fund was allocated during COP-28, the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC). This critical fund, inaugurated on the first day of the COP-28 climate conference in Dubai, marks a historical point in the fight against climate change.
The fund, first expected to be $475 million, has enormous potential for vulnerable nations dealing with the long-term effects of climate change. However, there is a significant mismatch beneath the surface: the allocated sum barely scratches the surface of the $400 billion required annually by nations confronting climate adversity. Although key players such as the UAE, the European Union, the United States of America, and Japan have pledged support, questions remain about the nature and sustainability of these commitments.
Climate Inequality: Uneven Effects
The difference in climatic impacts is stark. The severe floods in Pakistan in 2022 inundated a third of the country, affecting 33 million people and causing over $30 billion in losses. Meanwhile, Vanuatu, facing irreversible sea level rise, has evacuated six cities, emphasising the disproportionate impact on disadvantaged nations.
Developing countries have long advocated for a Loss and Damage Fund, encouraging developed countries to recognise their historical contributions to global warming. The gap in emissions shares, such as the United States’ 25% versus India’s 3.4%, emphasises the need for increased accountability and support.
Understanding Loss and Damage
Adelle Thomas of the IPCC explains the multidimensional nature of ‘loss and damage.’ Non-economic impacts, such as stress from catastrophes or biodiversity loss, contrast with economic costs, such as infrastructure damage or agricultural losses.
According to research, climate-related losses totalled $525 billion over a 20-year period, with losses expected to rise to $580 billion annually by 2030. Vulnerable groups bear the brunt of the consequences, a situation exacerbated by unequal effects and vulnerable sectors of emerging countries bearing severe consequences.
Emissions Crisis
The Industrial Era, which disrupted Earth’s natural balance, gave rise to a situation in which a few nations, notably the United States, United Kingdom, European Union, Russia, Canada, Japan, and Australia, contribute to the majority of emissions, impacting climate change.
With temperatures dangerously near the Paris Agreement threshold, the establishment of the Loss and Damage Fund at COP-28 appears to be a watershed moment. This is a specific financial refuge for vulnerable countries dealing with the terrible effects of climate change.
Challenges and Potential Concerns
While the introduction of the loss and damages fund provides a ray of hope for climate justice, several crucial concerns remain. Voluntary donations, imprecise access criteria, and a lack of stated replenishment obligations present severe problems. Experts warn against shifting funding from critical industries and advocate for new financing to prevent developing countries from becoming more indebted.
Climate catastrophes have gravely damaged nations already dealing with conflicts and economic insecurity, from Somalia to Syria, Afghanistan to Yemen, Chad to South Sudan, and elsewhere. Floods, acute food insecurity, and agricultural catastrophes exacerbate the problems. Ethiopia’s condition deteriorated following the withdrawal of the Black Sea Grain Initiative, aggravating food insecurity.
Establishing the Loss and Damage Fund at COP-28 is a meaningful step toward climate justice. Still, developed nations must honestly reflect on their role in the ongoing climate crisis and act accordingly. Meeting the urgent needs of climate-ravaged nations requires a worldwide commitment to adequacy, justice, and accessibility.
Source
Climate adaptation finance gap widens by 50%, says UN report | Devex
COP28 talks open in Dubai with breakthrough deal on loss and damage fund | UN News
Explainer: Who will pay for climate ‘loss and damage’? | Reuters
Loss and damage fund approved at COP28 summit: All you need to know | Explained News – The Indian Express
10 countries at risk of climate disaster | International Rescue Committee (IRC)
