Historic Deal At COP27 As Nations Agree To Create 'Loss & Damage' Fund For Poor Nations Hit By Climate Change

In a historic deal at COP27, the 2022 United Nations Climate Change Conference, developed nations agreed to create a 'Loss and Damage' fund to help poor countries pay for the unwanted consequences of climate change. The developing nations will benefit up to a large extent from the fund when they meet disasters like floods, droughts, and heat waves among others.

A Historic Deal

"It's so decided," said the president of COP27, Sameh Shoukry, before striking the historic deal with his gavel. The conference hall broke out with applause from country representatives. However, which country will provide financing for the fund and which will benefit from the same is a matter of future negotiations.

The development brings a considerable shift for countries like the United States (US), which opposed such funds in the past, fearing that it would become liable for lending vast sums of money. According to officials, almost 200 countries have agreed to launch the fund to help nations worst hit by climate change.

History was made today at #COP27 in Sharm El-Sheikh as parties agreed to the establishment of a long-awaited loss and damage fund for assisting developing countries that are particularly vulnerable to the adverse effects of climate change. pic.twitter.com/spmWVUjTva

— COP27 (@COP27P) November 20, 2022

Climate Justice For Developing Nations

"This is how a 30-year-old journey of ours found fruition today," said Climate Minister of Pakistan, Sherry Rehman, who pretends to be the leader of the world's poorest nations. One-third of Pakistan was submerged earlier this year after a devastating flood, and the minister, along with other officials, used the motto - 'What went on in Pakistan will not stay in Pakistan.'

According to the deal between nations, the fund would draw financing from developed countries and other public and private sources, such as international financial institutions, in the initial stages of its development, reported Deccan Herald. While major economies like China would not contribute to the fund, this matter remains on the table to be negotiated in the near future.

The European Union and the United States have also argued that countries like China which comes under the classification of developed countries, have been large polluters, and it should take responsibility for financing the fund.

According to officials, the fund would be focused on helping poor nations worst hit by climate change, but middle-income countries that battle with severe climate crises can also get aid. Many experts have praised the decision and appreciated the purpose of COP27 in Egypt. The president of the World Resources Institute, Anil Dasgupta, mentioned that it's a positive outcome of the climate change conference as this fund would be a lifeline for low-income families.

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