World Banks Likely To Host Climate Loss And Damage Fund Despite Concerns

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World Bank's Likely To Host Climate Loss And Damage Fund Despite Concerns

A significant step forward was taken on Saturday as countries inched closer to the realization of a critical "loss and damage" fund aimed at aiding states impacted by climate-related disasters.

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A significant step forward was taken on Saturday as countries inched closer to the realization of a critical "loss and damage" fund aimed at aiding states impacted by climate-related disasters. Despite reservations from developing nations and the United States, the decision represents a breakthrough following years of reluctance from wealthier nations.

The proposal for the fund, hailed as a landmark achievement for developing countries during the United Nations climate talks in Egypt last year, has encountered obstacles in the past 11 months. Disagreements persisted regarding the fund's funding mechanisms and its proposed location.

In a bid to resolve the impasse, a special U.N. committee convened for the fifth time in Abu Dhabi this week. The committee, comprising a diverse array of countries, ultimately recommended the World Bank as the interim trustee and host for the fund, despite concerns raised by developing countries about the potential influence and fees associated with housing the fund at the World Bank, particularly with respect to the influence of donor nations.

Germany's special climate envoy, Jennifer Morgan, expressed readiness for Germany to contribute to the fund and explore additional avenues for sustainable financing. However, others were less optimistic, with Harjeet Singh, the head of global political strategy at Climate Action Network International, criticizing the decision as a letdown for climate justice, reported India Today.

While the committee recommended that developed countries continue to support the fund, it failed to resolve the issue of whether wealthy nations would be obligated to make mandatory financial contributions. The inclusion of a U.S.-proposed footnote clarifying voluntary contributions was met with objections, underscoring the challenges in reaching a consensus on the fund's operation.

Sultan al-Jaber, the upcoming presiding officer for the COP28 talks, welcomed the committee's recommendations, expressing optimism that they would pave the way for a comprehensive agreement during the upcoming summit. As the world gears up for COP28, the fate of the climate disaster fund remains a focal point, reflecting the ongoing struggles and complexities surrounding climate change negotiations on the global stage.

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