COP28 Sparks Global Applause as Nations Seal Deal on Damage Fund
Nations at COP28 in Dubai unanimously established a groundbreaking damage fund, enabling the transfer of crucial financial support to countries most affected by the climate crisis A historic moment applauded with a standing ovation
Delegates at the COP28 climate summit in Dubai have officially approved a damage fund, with multiple nations pledging millions of dollars to assist the countries most affected by the climate crisis. This initial success on the first day of discussions provides more room for dialogue on the challenging issues regarding reducing fossil fuel usage.
For years, there has been a demand for a fund to allocate resources to developing nations to help them address the effects of climate change, which has hindered progress at annual negotiations. The specifics of the fund were established earlier this month during a pre-COP meeting and were finalized on Thursday, with the hope that it will facilitate progress in other areas during the summit.
Today marks a historic day as the decision was adopted on the first day of any COP," stated COP28 President Sultan Al Jaber. The motion was passed without objection and received a standing ovation.
Although all parties agreed to the fund, there was initial opposition to having the World Bank as the host. Some countries objected to the bank's strong US connections, but ultimately agreed to the condition that the World Bank's oversight of the fund would be temporary.
The 28th session of the Conference of the Parties (COP28) to the UNFCCC will take place beginning November 30 to December in Dubai, United Arab Emirates.
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Several countries immediately pledged funds to the newly agreed upon climate fund. The United Arab Emirates, as host of COP28, pledged $100 million, along with Germany. The UK announced £60 million, a portion of which will be allocated for "other arrangements," as stated in the release. The US also committed $17.5 million to the fund, while Japan contributed $10 million. The establishment of the fund was widely praised by climate experts and advocacy groups, although many emphasize that this is only the first step in fully supporting countries most impacted by the climate crisis.
Rich nations must now start contributing to the fund, as it will serve as a crucial resource for those in need during their most difficult times. It will provide support for rebuilding homes after disasters, helping farmers recover from crop loss, and assisting those permanently displaced by rising seas. Ani Dasgupta, president & CEO of World Resources Institute, emphasized the significance of this outcome as a positive advancement.
Development has finally occurred after lengthy debates over the responsibility for funding climate impacts. Since the early 1990s, developing countries and small island states have been advocating for these financial resources.
Some affluent nations, such as the United States, have hesitated to link their historical emissions to their obligations. There has also been disagreement as wealthy nations worry that contributing to such a fund could be perceived as an admission of climate accountability.
Now that the damage fund decision has been made, attention will shift to the Global Stocktake. During this phase, countries will need to come to a consensus on the wording to officially acknowledge the progress made in addressing the climate crisis. The most contentious issue, however, revolves around determining the language to describe the future of fossil fuel usage, which is the primary cause of the human-induced climate crisis.
Since the summit in Egypt last year, over 80 countries have expressed their support for measures to phase out the use of fossil fuels. However, many are in favor of continued use as long as measures are taken to capture climate pollution before it is released into the atmosphere. According to analysts, the UAE is advocating for allowances regarding carbon capture in the final text.
The appointment of Al Jaber, who also heads the nation's large oil and gas company, ADNOC, to preside over the meetings, has faced strong criticism. Over 100 members of US Congress and the European Parliament opposed his appointment in May, while numerous NGOs have raised concerns about whether he and the UAE can conduct a transparent conference without being influenced by their own energy interests.
Al Jaber pledged in his opening remarks that he would ensure full transparency in the process.
