After being agreed at COP27 in Sharm El Sheikh, the loss and damage fund became operational today as world leaders meet in Dubai for the start of this year’s annual climate conference, with the UAE announcing a commitment of $100 million to the fund.
The “historic agreement” to operationalise the fund was announced by COP28 President Dr. Sultan Al Jaber on the opening day of the conference.
The loss and damage fund becomes operational after the agreement reached by parties during five transitional committee meetings. The fifth meeting was hosted earlier this month, and parties reached a resolution.
Ultimately, the fund aims to provide financial assistance to countries at extreme risk from climate change, and to support climate change mitigation and recovery.
“What was promised in Sharm El Sheikh, has already be delivered in Dubai. The speed at which the world came together, to get this Fund operationalized within one year since Parties agreed to it in Sharm El Sheikh is unprecedented,” said Dr Sultan.
As well as the capital injection from the UAE, other notable commitments to the fund include $100 million from Germany, £40 million from the UK for the fund and £20 million for other arrangements, a commitment of $10 million from Japan, and $17.5 million from the U.S.
Currently, there are no details as to how exactly the funding will be disbursed, but there has been much discussion about how the loss and damage fund could pay some risk transfer premiums for the most vulnerable nations.
Today, at COP28, Dr. Al Jaber called on other nations to follow the UAE’s example and to immediately commit resources to the fund.
“This Fund will support billions of people, lives and livelihoods that are particularly vulnerable to the effects of climate change.
“I want to thank my team for all their hard work to make this possible on day one of COP28. It proves, the world can unite, can act, and can deliver. Over the next two weeks this Presidency will work with Parties to now deliver the highest-ambition response to the GST,” commented Dr Sultan.
The announcement on the fund notes that this decisive action on loss and damage will enable the parties to focus on the strongest possible response to the Global Stocktake, which is the world’s report card on progress toward Paris Agreement goals.
