Following the groundbreaking achievement of securing the climate damage compensation deal at COP27, Africa’s pursuit of the Loss and Damage Fund receives a significant boost at this year’s climate summit. Several states have committed millions to activate the Fund, providing a substantial injection of capital.
Established after rigorous negotiations at COP27, the Loss and Damage Fund aims to offer financial assistance to countries facing extreme climate change risks, supporting both mitigation and recovery efforts. This initiative compensates states with historically low carbon emission levels for the impacts of climate change, such as rising sea levels, droughts, floods, and catastrophic weather events.
After the 2022 climate talks in Sharm el Sheikh, little progress was made, and the issue seemed to fade into the background of climate discussions. However, at the 2023 event in Dubai, COP28 President Dr Sultan Al Jaber announced a transformative commitment of US$100 million from the United Arab Emirates to “capitalize and operationalize” the Fund.
This announcement triggered a chain reaction, with Germany pledging US$100 million, the UK offering £40 million for the Fund and £20 million for other arrangements, Japan pledging US$10 million, and the U.S. committing to US$17.5 million.
Dr Al Jaber expressed his satisfaction, stating, “The hard work of many people over many years has been delivered in Dubai,” and noted the unprecedented speed at which the world came together to operationalize the Fund within one year since its agreement in Sharm El Sheikh.
Compensation for loss and damage became a contentious issue at COP26 in Glasgow, Scotland, with developing nations insisting on financial assistance to mitigate the effects of climate change. Strong opposition from wealthy and heavily polluting economies led to the deferral of the issue to Sharm El-Sheikh, dubbed “Africa’s COP.”
During COP27, African leaders made it clear that they would persist until a loss and damage deal was on the table, including a payment plan in the final resolutions of the talks. Their persistence paid off.
Managed by the Green Climate Fund, an entity under the UNFCCC that finances climate projects in developing countries, the Loss and Damage Fund will have a dedicated board overseeing governance, allocation, and resource disbursement.
The establishment of this Fund is considered a breakthrough in global climate negotiations, recognizing the responsibility of developed countries, which have been major contributors to climate emissions for over a century, to support developing nations with lighter carbon footprints in coping with the impacts of climate change.
Seth Onyango, Bird Story Agency
PMAN Lagos Woos Lagos State Ministry of Tourism and Culture for Entertainment Boost
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