COP28 off to a strong start on loss and damage

The first day of COP28 saw tangible steps taken to reduce the economic burden on developing countries affected by the impact of climate change. This relief has come in the form of a new Loss and Damage Fund, first agreed during COP27 in Egypt last year, and which became operational on 30 November 2023. Since agreement was reached last week participating countries, including the UAE, Germany, the UK, France, Italy, the U.S, Canada and Japan, have already pledged over $650 million to the fund, which will be used to compensate vulnerable countries for “loss and damage” from climate change induced disasters.

Despite the need for urgent action, it appears as though it may be some time before the pledged funds are deployed. In a statement made on Friday 1st December, World Bank president Ajay Banga indicated that project financing would be subject to further technical analysis to be undertaken over the next year. This statement was supported by the South African COP28 negotiating team during a briefing session with the South African Delegation on Monday 4th December, where it was advised that a board would be formed for the Loss and Damage Fund between now and the end of January 2024, and that one of the duties of the board would be to design a strategy for resource allocation and mobilisation.

The manner in which this funding is utilised will bear watching over the coming years. As further elaborated on in the IPCC Working Group II Report on Impacts, Adaptation and Vulnerability published last year, losses and damages are already being experienced, often disproportionately by developing countries and by people who are socio-economically vulnerable.

In this context, it will not be enough to utilise global funding in a strictly reactive manner, such as when disasters such as floods or droughts occur. There must of course be relief in such circumstances, but serious efforts need to be made towards adaptation in order to guard against the effects of climate change.