ASWAN/Egypt: The fourth meeting of the Transition Committee for the operationalization of the Loss and Damage Fund, established during COP27 in Sharm el-Sheikh, concluded in Aswan, Egypt, with no clear resolutions on key issues, particularly regarding the fund’s domicile. Developed countries, led by the United States of America, held their ground from October 17 to 20, 2023, insisting on complete control over the fund, which they argue is intended to benefit developing nations.
Harjeet Singh, the Head of Global and Political Strategy of the Climate Action Network (CAN), expressed deep disappointment at this outcome, characterizing it as an attempt to exert control over developing countries. This move to place the Loss and Damage Fund under the purview of the World Bank, an institution historically viewed as serving the interests of developed nations, highlights a lack of commitment to climate justice and correcting past mistakes, according to Singh.
Historically, emissions from developed countries have been a primary driver of the climate crisis. These emissions not only contributed to the problem but also enabled these countries to advance technologically, affording them a significant advantage in terms of access to finance and technology necessary for emission reduction.
Despite this historical context, developed nations have consistently failed to make essential compromises to foster trust in international climate processes. They first fell short of the agreed-upon $100 billion annual support for developing countries by 2020 and later attempted to pass off high-interest loans as part of this commitment.
The insistence on control over the Loss and Damage Fund adds further frustration for developing nations, making access to necessary resources even more challenging. Developing countries argue that the funding from wealthy nations, whether through the Green Climate Fund, Adaptation Fund, or the Loss and Damage Fund, should not be viewed as charity but rather as a way to address the environmental destruction resulting from industrialization.
Confronted with the reality of climate change, developing nations have embraced low-carbon development strategies, hoping for the financial support promised by developed countries to facilitate mitigation, adaptation, and support for loss and damage. Yet, all they receive are empty promises.
It is noteworthy that, as the Ukraine-Russian war unfolded and energy crises gripped Europe, some of the same developed nations that urged divestment from fossil fuels and net-zero transition plans made a rush for gas in Africa while reactivating coal-powered energy industries in their own countries.
The Loss and Damage Fund presented a unique opportunity for developed countries to build trust and prioritize the interests of the fund’s intended beneficiaries. However, their insistence on control reinforces the perception that their actions prioritize self-interest over the long-term well-being of the planet.
Contributors:
Prof. Chukwumerije Okereke: Professor of Global Governance and Public Policy at the University of Bristol.
Nnaemeka Oruh: Senior Policy Analyst with the Society for Planet and Prosperity, Nigeria.
