COP27: Funding for Loss and Damage Finally Approved
.... Governments took the ground-breaking decision to establish new funding arrangements, as well as a dedicated fund, to assist developing countries in responding to loss and damage.
For an issue that was not even on the agenda when the United Nations climate change talks opened here in Sharm el Sheikh two weeks ago, it is a major feat that countries ended up adopting a funding facility to support developing countries impacted by climate change.
As the conference closed in the early hours of Sunday, November 20 (two days after schedule), delegates applauded the adoption of a financial mechanism for loss and damage, as it is called in the UN jargon.
“We have determined a way forward on a decades-long conversation on funding for loss and damage,” said United Nations Climate Change Executive Secretary Simon Stiell.
Governments took the ground-breaking decision to establish new funding arrangements, as well as a dedicated fund, to assist developing countries in responding to loss and damage.
They also agreed on principles for establishing a ‘transitional committee to make recommendations on how to operationalize both the new funding arrangements and the fund at next year’s conference (COP28), which is expected to take place in Dubai.
Additionally, the parties further agreed on the institutional arrangements to operationalize the Santiago Network for Loss and Damage, to catalyze technical assistance to developing countries that are most affected by the increasing effects of climate change but did not say which countries specifically.
Addressing the issue of adaptation to improve resilience amongst the most vulnerable, new pledges to the tune of US$230 Million has been committed. This fund will focus on climate adaptation by taking on concrete solutions-driven programs.
However, COP27 parties have announced that the full implementation of the “Sharm el-Sheikh Implementation Plan” to achieve the global transformation of a low-carbon economy will need an investment of at least US$6 trillion annually.
Delivering such funding, COP27 parties say, will require a swift and comprehensive transformation of the financial system and its structures and processes, engaging governments, central banks, commercial banks, institutional investors, and other financial actors.
The Sharm El-Sheikh conference brought together over 45,000 participants to share ideas and solutions and build partnerships and coalitions to build on decisions that were reached from COP26.
COP27 also saw climate justice, rights advocates, civil society, children, youth and indigenous peoples, and local communities, showcasing their work and advancing recommendations to address climate change and telling their stories of how the effects of climate change have and continue to impact their lives and daily livelihoods calling on leaders around the negotiating tables to act swiftly.
“I pay tribute to the delegates and members of civil society who came to Sharm el-Sheikh to push leaders for real climate action, that is what we need,” Egypt’s Minister of Foreign Affairs and President of COP27, Sameh Shoukry, told parties after their lengthy tight hours of negotiations.
“From the beginning, this conference has been driven by two overriding themes: justice and ambition.
“Justice for those on the frontlines who did so little to cause the crisis — including the victims of the recent floods in Pakistan that inundated one-third of the country. Ambition to keep the 1.5-degree limit alive and pull humanity back from the climate cliff. This COP has taken an important step towards justice.”
COP27 parties also affirmed their commitment to limit global temperature rise to 1.5 degrees Celsius above pre-industrial levels. This includes strengthening countries’ action to cut down greenhouse gas emissions and adapt to the inevitable impacts of climate change, as well as boosting the support of finance, technology, and capacity building for developing nations.
The outcomes from COP27 will allow all Parties to work together to address participation imbalances and provide stakeholders with the necessary tools to drive greater and more inclusive climate action at all levels.
During the 2 weeks of meeting in Sharm El-Sheikh, a series of announcements and progress were made. They include new funding to the tune of US$105.6 million from Finland, Slovenia, Sweden, Belgium, Denmark, Ireland, and Germany as support for the Global Environment Facility funds targeting to tackle climate adaptation needs in income countries.
The G20 Summit, which was held in parallel with COP27, the new Indonesia Just Energy Transition Partnership, announced that it will provide US$20 billion over the next three to five years to accelerate a just energy transition.
There was also progress made on forest protection. COP27 also saw the launch of the Forest and Climate Leaders’ Partnership which aims to unite action by governments, businesses, and community leaders to halt forest loss and land degradation by 2030 among other things.
This story is produced as part of the 2022 Climate Change Media Partnership, a journalism fellowship organized by Internews' Earth Journalism Network and the Stanley Center for Peace and Security.