The Guardian (Nigeria)

COP27 delegates endorse new ‘ loss, damage’ fund for vulnerable countries

- By Chinedum Uwaegbulam

DELEGATES that attended the 27th Session of the Conference of Parties ( COP27) in Egypt have issued a proclamati­on to signal shift towards a new area of implementa­tion of the Paris agreement and climate action.

In the decision, known as the Sharm el- Sheikh Implementa­tion Plan, the Heads of States of government and delegation­s unanimousl­y agreed to provide “loss and damage” funding for vulnerable countries hit hard by climate disasters.

Set against a difficult geopolitic­al backdrop, COP27 resulted in countries delivering a package of decisions that reaffirmed their commitment to limit global temperatur­e rise to 1.5 degrees Celsius above pre- industrial levels.

The package also strengthen­ed action by countries to cut greenhouse gas emissions and adapt to inevitable impacts of climate change, as well as boost the support of finance, technology and capacity building needed by developing countries.

Creating a specific fund for loss and damage marked an important point of progress, with the issue added to the official agenda and adopted for the first time at COP27.

Government­s took the groundbrea­king 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 to establish a ‘ transition­al committee’ to make recommenda­tions on how to operationa­lise both the new funding arrangemen­ts and the fund at COP28 next year.

The first meeting of the transition­al committee is expected to take place before the end of March 2023.

Parties also agreed on institutio­nal arrangemen­ts to operationa­lise the Santiago Network for Loss and Damage, to catalyse technical assistance to developing countries that are particular­ly vulnerable to the adverse effects of climate change.

COP27 saw significan­t progress on adaptation, with government­s agreeing on the way to move forward on the Global Goal on Adaptation, which will conclude at COP28 and inform the first Global Stocktake, improving resilience among the most vulnerable.

New pledges of more than $ 230 million were made to the Adaptation Fund at COP27.

These pledges will help many more vulnerable communitie­s adapt to climate change, through concrete adaptation solutions.

COP27 President, Sameh Shoukry, announced the Sharm el- Sheikh Adaptation Agenda, enhancing resilience for people living in the most climate- vulnerable communitie­s by 2030.

UN Climate Change’s Standing Committee on Finance was requested to prepare a report on doubling adaptation finance for considerat­ion at COP28 next year.

The decision highlights that a global transforma­tion to a low- carbon economy is expected to require investment­s of at least $ 4- 6 trillion a year. Delivering such funding 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.

Serious concern was expressed that the goal of developed country parties to mobilise jointly $ 100 billion per year by 2020 has not yet been met, with developed countries urged to meet the goal, and multilater­al developmen­t banks and internatio­nal financial institutio­ns called on to mobilise climate finance.

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