Pact sealed on fund for climate damage
SHARM EL-SHEIKH, Egypt — For the first time, the nations of the world decided to help pay for the damage an overheating world is inflicting on poor countries, but they finished marathon climate talks on Sunday without further addressing the root cause of those disasters — the burning of fossil fuels.
The deal, gavelled around dawn, established a fund for what negotiators call loss and damage.
It was a big win for poorer nations which have long called for money — 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 has also long been called an issue of equity for nations hit by weather extremes and small island states that face an existential threat from rising seas.
“Three long decades and we have finally delivered climate justice,” said Seve Paeniu, the finance minister of Tuvalu. “We have finally responded to the call of hundreds of millions of people across the world to help them address loss and damage.”
Pakistan’s environment minister, Sherry Rehman, said the establishment of the fund “is not about dispensing charity.”
“It is clearly a down payment on the longer investment in our joint futures,” she said, speaking for a coalition of the world’s poorest nations.
The deal followed a game of chicken, with nations that supported the fund also signaling they would walk away if there was any backsliding on language on the need to slash greenhouse gas emissions.
Early Sunday, delegates approved the compensation fund but had not dealt with the contentious issues of an overall temperature goal, emissions cutting and the desire to target all fossil fuels for phase down. Through the wee hours of the night, the European Union and other nations fought back what they considered backsliding in the Egyptian presidency’s overarching cover agreement and threatened to scuttle the rest of the process.
The package was revised again, removing most of the elements Europeans had objected to but adding none of the heightened ambition they were hoping for.
“What we have in front of us is not enough of a step forward for people and planet,” a disappointed Frans Timmermans, executive vice president of the European Union, told his fellow negotiators. “It does not bring enough added efforts from major emitters to increase and accelerate their emissions cuts.”
Germany’s Foreign Minister Annalena Baerbock likewise voiced frustration.
“It is more than frustrating to see overdue steps on mitigation and the phase-out of fossil energies being stonewalled by a number of large emitters and oil producers,” she said.
While the new agreement doesn’t ratchet up calls for reducing emissions, it does retain language to keep alive the global goal of limiting warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit).
Next year’s talks will see further negotiations to work out details of the new loss and damage fund, as well as review the world’s efforts to meet the goals of the 2015 Paris accord, which scientists say are slipping out of reach.
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 wouldn’t automatically have to contribute, that option remains on the table. 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.