COP27 approves 'historic decision' to set up 'loss and damage' fund, but contentious issues remain

Tribune News Service

Vibha Sharma

New Delhi, November 20

The UN climate talks in Egypt ended after prolonged discussions with countries adopted a hard-fought final agreement to set up a ‘loss and damage’ fund to help poor countries being battered by climate disasters.

The development was welcomed by many who called it a “shift in mindset” that offered “hope” for destruction caused by climate change-induced disasters.

However, the creation of the fund was the bare minimum that has been accomplished as a number of issues crucial to the operationalisation of this fund, some of them highly contentious, have been left for another day.  

Since there is still no clarity on the terms of the funding arrangements, experts said a broader discussion based on the definition of development itself and the reformation of the financial systems must take place at the highest level as costs from extreme weather soar to over $200 billion annually.

Sticky issues include questions like who will pay into the fund, who will be able to access it, and how will it be managed. A transitional committee has been set up to look into all these issues, including the possibility of “identifying and expanding” the sources of funding, though some countries announced pledges on loss and damage.

Besides, there was nothing in the COP27 agreement that could lead to greater action on emissions reductions or mobilise greater financial or technological resources to fight climate change, many also felt. Attempts to ensure stronger provisions on emissions reductions did not receive the consent of all parties and neither did a proposal to phase-down all fossil fuels, originally put forward by India and supported by a large number of countries.

In other words, a reassessment of which countries will pay and which will receive will continue to be a major issue next year.

“The clause on carbon markets is neither conclusive nor good. The 1.5 degrees C commitment to the limit was reaffirmed in the cover decision and elsewhere but actions agreed at COP27 to get on to the pathway were missing,” analysts felt.

Ulka Kelkar from the World Resources Centre called the agreement a “testament to the tenacity of climate vulnerable countries and a warning shot to polluters that they can no longer go scot-free with their climate destruction”. 

At the same time Kelkar added that the final decision could have made a powerful commitment in the current energy crisis to phase out all fossil fuels.

According to TERI’s RR Rashmi, the “final text merely keeps the processes alive till the next COP. While a notional funding arrangement for L&D has been agreed upon, its shape and scale are far from clear. It is unlikely that calls on other crucial issues will be taken before the conclusion of the global stocktake”.

Held in the backdrop of food and energy crisis, and some of the worst climate disasters in the world, much was expected from COP27. India engaged constructively and actively on the subject of loss and damage, along with “phasing down of all fossil fuels”.

The success of the talks hinged on the fund to address the “loss and damage” fund, which was proposed by the G77, China and India, least developed countries and small island states. Vulnerable countries said they would not leave COP27 without a loss and damage finance facility.

Developed nations, particularly the US, opposed fearing it would hold them legally liable for massive damages caused by climate change. It was only after tense negotiations running through the night, the Egyptian COP27 presidency released the final text for a deal.

“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,” the official twitter handle of the climate summit posted.

UN Secretary-General António Guterres said COP27 has taken an important step towards justice. “I welcome the decision to establish a loss and damage fund and to operationalize it in the coming period. Clearly this will not be enough, but it is a much-needed political signal to rebuild broken trust,” he tweeted.

The fact that the countries failed to agree to a phasedown of all fossil fuels, building on a call to phase-down coal at COP26 in Glasgow, did not go down well.  “Perhaps this was no surprise, the presence of the oil, gas and big agriculture industries hung heavy over these talks, with 600 plus lobbyists at the summit and a stream of gas deals struck on the sidelines,” said an analyst who did not wish to be named.

COP26 asked parties to, among other things, transition to low energy systems through the phase down of unabated coal phase down.

Vaibhav Chaturvedi from Council on Energy Environment and Water said “while the new funding arrangement is welcome, who will pay for it drowned into the choppy water of definitions, mechanisms, and most importantly developed countries versus major economies.”

According to Pallavi Das from CEEW, “India negotiated from a position of strength and ensured that the debate moved from coal phase out to fossil phase down. This push exposed the hypocrisy of oil and gas producers, mainly the USA and Saudi Arabia, and the text settled on coal phasedown, as in the case of Glasgow. India should continue to corner gas and oil producing countries to ensure that the world is on track to achieve the 1.5 degrees C target.”

Shruti Sharma from IISD, also called it “disappointing that COP27 did not build on the COP26 statement to deliver a stronger message on phase-out of fossil fuels”.

About The Author

Tribune News Service

The Tribune News Service brings you the latest news, analysis and insights from the region, India and around the world. Follow the Tribune News Service for a wide-ranging coverage of events as they unfold, with perspective and clarity.

Join Whatsapp Channel of The Tribune for latest updates.

#climate change #COP27 #Environment #Pollution