At COP28, ‘loss and damage’ fund to compensate developing nations approved

Dubai: The UN climate talks here opened with a bang with countries clinching an early deal on how to compensate developing and poor nations that bear the brunt of the climate crisis despite contributing little to it, a decision welcomed by climate activists with caution.

The agreement on the operationalisation of the Loss And Damage Fund on the first day of the annual climate negotiations, called COP28, sets the stage for ambitious decisions over the next 12 days.

Conference of Parties to the United Nations Framework Convention on Climate Change (UNFCCC) is a platform where more than 190 countries hold discussions to reduce carbon emissions to keep the global temperature rise to 1.5 degrees Celsius compared to the pre-industrial era as per the Paris Agreement of 2015. The text of the draft stated that developed countries are “invited” to make contributions and developing countries say the actual needs are closer to $400 billion per annum.

All developing countries are eligible to directly access resources from the Fund, with a minimum percentage allocation floor for Least Developed Countries and Small Island Developing States. Developing countries have called for ‘direct access’ for recipient countries and vulnerable communities.