WASHINGTON: Countries moved a step closer on Sunday to getting a fund off the ground to help poor states damaged by climate disasters, despite reservations from the US and some other countries.

The deal to create a “loss and damage” fund was hailed as a breakthrough for developing country negotiators at UN climate talks in Egypt last year, overcoming years of resistance from wealthy nations. But in the past 11 months, governments have struggled to reach consensus on the details of the fund, such as who will pay and where the fund will be located.

A special UN committee tasked with implementing the fund has met for a fifth time in Abu Dhabi this week to finalise recommendations that will be put to governments when they meet for the annual climate summit COP28 in Dubai. The goal is to get the fund up and running by 2024.

The committee, representing a geographically diverse group of countries, resolved to recommend the World Bank serve as trustee and host of the fund — a tension point that has fuelled divisions between developed and developing nations.

UN team yet to finalise recommendations for COP28

Housing a fund at World Bank, whose presidents are appointed by the US, would give donor countries outsized influence over the fund, developing countries argue. To get all countries on board, it was agreed the World Bank would serve as interim trustee for four years.

Jennifer Morgan, Germany’s special climate envoy, said in a post on X that Berlin “stands ready to fulfil its responsibility — we’re actively working towards contributing to the new fund and assessing options for structural sources of financing”.

Others were less optimistic.

“It is a sombre day for climate justice, as rich countries turn their backs on vulnerable communities,” said Harjeet Singh, head of global political strategy at nonprofit Climate Action Network International.

“Rich countries ... have not only coerced developing nations into accepting the World Bank as the host of the Loss and Damage Fund but have also evaded their duty to lead in providing financial assistance to those communities and countries.”

Voluntary or mandatory

The committee recommended that developed countries be urged to continue to provide support to the fund, but failed to resolve if wealthy nations would be under financial obligation to do chip in.“We regret the text does not reflect consensus concerning the need for clarity on the voluntary nature of contributions,” a US State Department official said.

Published in Dawn, November 6th, 2023