6weeks away ofCOP28،hot debate over loss and damage fund agreed atCOP27، Egypt

A major divide is emerging sbout the loss and damage fund for climate change after countries reached a major breakthrough to agree in principle to create it at last year’s COP27، in Egypt، and is creating hot debate between developed and developing nations، while، COP28 is just six weeks away and countries are already trading blows over what is likely to be one of the most contentious issues at this year’s UN climate summit in Dubai.

The loss and damage fund is creating deep debate between developed and developing nations

Bloomberg reported that the fund for the losses and damages is creating deep debate between developed and developing nations، ahead of COP28، over who should operate it and how it should be filled as well as details such as its location and who pays for it، after countries reached a major breakthrough to agree in principle to create the fund at last year’s United Nations Conference of the Parties، or COP27، in Egypt. 

The summit of COP28 in UAE، countdown heats up as countries spar over loss and damage fund as  COP28 is just six weeks away and countries are already trading blows over what is likely to be one of the most contentious issues at this year's UN climate summit in Dubai.

Rich countries want heavy emitters like China and Saudi Arabia to put money into the fund

Rich countries want heavy emitters like China and Saudi Arabia to put money into the fund، arguing the world has significantly changed in 30 years and those two are now wealthy enough to provide such aid، while China and Saudi Arabia are countering the move، while other nations in the developing world are accusing the US and the EU of trying to locate a fund at the World Bank، instead of creating a standalone facility under the remit of the United Nations.

Countries have been arguing over the details of the fund this week at the fourth and final UN committee meeting to discuss loss and damage as said Pedro Cuesta، the Cuban chair of the Group of 77 negotiating group، which includes both Saudi Arabia and China who warned that the developing countries have been confronted with an elephant in the room and that elephant is the US. 

The World Bank is not the institution that can best respond to climate change

The World Bank is not the institution that can best respond، but this fund can best comply with what the developing countries  looking for as climate change causes  severe structural damages such as Hurricane Ian in Havana، Cuba، which knocked out electricity to the entire island on Sept. 28، 2022 and Cuban officials said they had just begun to restore some power. 

The US delegation denied blocking progress and confirmed that it is inaccurate، indeed irresponsible،  to suggest that the US has been obstructionist when Washington has been working diligently at every turn to address concerns، problem-solve and find landing zones.

Christina Chan، managing director and a senior adviser to US Special Presidential Envoy for Climate John Kerry stated that the US remains clear and consistent about the need to deliver on the loss and damage mandate from COP26 at this last meeting of the transitional committee.

Developed and developing countries are entrenched ahead of COP28

The fight is raising concern that developed and developing countries are becoming increasingly entrenched ahead of COP28، the summit is supposed to measure how far the world has come since the landmark Paris Agreement in 2015 and lay out what more can be done to close the gap and keep global warming to 1.5C، but it is facing an uphill challenge against a backdrop of heightened geopolitical tensions and elevated inflation.

A warm-up summit to COP28 earlier this year descended into inter-country bickering and what some said was a lack of ambition from the United Arab Emirates، this year’s host nationm while there’s more confidence that Sultan Al-Jaber، the President of the conference COP28، wants an ambitious outcome، there’s few signs that the rifts between the rich and poor countries have come closer to being closed. 

World Bank is best-placed to host the loss and damage fund

Developed countries see the World Bank as an institution that’s best-placed to host the loss and damage fund، given its global outreach and experience with similar financial bodies، as it has boosted its commitment to funding climate goals of the summit  COP28 this year amid global calls for multilateral banks to do more and it’s also the quickest solution، with the previous experience of setting up a standalone facility — the Green Climate Fund — taking years to operationalize.

But there is concern among poor countries that the World Bank’s climate shift is for show only as its ex-chief David Malpass became embroiled in a controversy last year after fumbling a question at a conference on the causes of climate change، fueling criticism that he didn’t accept the scientific consensus of the impact of man-made emissions snd it’s also not clear how easily it would be for countries like Cuba to receive funds from the bank given it’s the subject of US sanctions.

Faustian bargain now will break the COP28

Pedro Cuesta، the Cuban chair of the Group of 77 negotiating group indicated that a small group of nations responsible for the most significant proportion of greenhouse gases have tried to bargain potential support for a fund while، accepting this Faustian bargain now will break the COP28.

However، EU countries hammer out joint stance for COP28 climate summit as they adopted a common stance for the COP28 climate conference، but language on the EU’s emissions reduction target and fossil fuel exit goal was softened to reach a unanimous decision.

EU’s united stance for the COP28 summit

The EU’s 27 environment ministers met in Luxembourg this month  to agree on the EU’s stance for the COP28 summit opening in Dubai on 30 November، throwing their weight behind a goal to triple global renewable energy capacity and double energy efficiency improvements by 2030.

The most ambitious countries had to accept watered-down language on the EU’s push to phase out fossil fuels and reduce emissions as the decision needed to be taken by unanimously snd the EU will also push for a predominantly fossil-free global energy sector  well before 2050  and strive to reach a fully or predominantly decarbonised power system in the 2030s.

Pressures from Eastern EU countries

But they had to bow to pressure from Eastern EU countries، which have a more significant challenge decarbonising their economies because of their heavier reliance on coal and texts adopted by unanimity always take a little longer to agree as European countries have quite different energy situations، with some still very dependent on coal such as Poland where coal makes up 70% of the electricity mix.

EU member states will go to COP28 stressing the importance of scaling up the global ambition to remain within the 1.5ºC global warming limit and the European Commission، fully implementing the package will result in a 57% reduction in emissions by 2030 compared to 1990 levels، more than the initial 55% goal agreed two years ago.

Environmental activists، for their part، want the EU to support a COP28 outcome that is grounded in science، and to recognise that more must be done to align climate action and finance with Europe’s historical responsibilities، however، the EU’s COP28 position also includes calls to peak emissions this decade and phase out  unabated  fossil fuels، a controversial term referring to carbon capture and storage technologies، while، the fossil industry will use this loophole to continue burning coal، oil and gas without regard to climate protection، but climate protection is only possible without fossil energies