HISTORIC COMPENSATION FUND APPROVED AT UN CLIMATE TALKS
Overall deal still up in air with disagreement over limiting warming to 1.5°C
SHARM EL-SHEIKH, Egypt — Negotiators early Sunday approved a historic deal that would create a fund for compensating poor nations that are victims of extreme weather worsened by rich countries’ carbon pollution, but an overall larger agreement still was up in the air because of a fight over emission reduction efforts.
After the decision on the fund was approved, talks were put on hold for 30 minutes so delegates could read texts of other measures they were to vote on.
The decision establishes a fund for what negotiators call loss and damage. It is a big win for poorer nations which have long called for cash — sometimes viewed as reparations — because they are often the victims of climate worsened floods, droughts, heat waves, famines and storms despite having contributed little to the pollution that heats up the globe.
It is also long been called an issue of climate justice.
“This is how a 30-year-old journey of ours has finally, we hope, found fruition today,” said Pakistan Climate Minister Sherry Rehman, who often took the lead for the world’s poorest nations. One-third of her nation was submerged this summer by a devastating flood and she and other officials used the motto: “What went on in Pakistan will not stay in Pakistan.”
Outside experts hailed the decision as historic.
“This loss and damage fund will be a lifeline for poor families whose houses are destroyed, farmers whose fields are ruined, and islanders forced from their ancestral homes,” said Ani Dasgupta, president of the environmental think tank World Resources Institute, minutes after the early morning approval. “This positive outcome from COP27 is an important step toward rebuilding trust with vulnerable countries.”
According to the agreement, the fund would initially draw on contributions from developed countries and other private and public sources such as international financial institutions. While major emerging economies such as China would not initially be required to contribute, that option remains on the table and will be negotiated over the coming years. This is a key demand by the European Union and the United States, who argue that China and other large polluters currently classified as developing countries have the financial clout and responsibility to pay their way.
The fund would be largely aimed at the most vulnerable nations, though there would be room for middle-income countries that are severely battered by climate disasters to get aid.
Bleary-eyed rumpled delegations began to fill the plenary room 4 a.m. local time Sunday without seeing the overarching cover decision.
Going into the final session, battle lines were drawn over India’s request to change last year’s agreement that called for a phase down of “unabated coal” to include a phase down of oil and natural gas, two other fossil fuels that produce heat-trapping gases. While European nations and others keep pushing for that language, Saudi Arabia, Russia and Nigeria have been insistent on keeping it out.
“We are extremely on overtime. There were some good spirits earlier today. I think more people are more frustrated about the lack of progress,” Norwegian climate change minister Espen Barth Eide told The Associated Press. He said it came down to getting tougher on fossil fuel emissions and retaining the goal of limiting warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit) since preindustrial times as was agreed in last year’s climate summit in Glasgow.
“Some of us are trying to say that we actually have to keep global warming under 1.5 degrees and that requires some action. We have to reduce our use of fossil fuels, for instance,” Eide said. “But there’s a very strong fossil fuel lobby ... trying to block any language that we produce. So that’s quite clear.”