The legacy of the COP28 climate summit, which concluded this week in Dubai, relies on the success of a new international fund announced on the first day of the conference. The loss and damage fund is seen as crucial to the survival of the countries most affected by the 1.2 degrees Celsius of global warming that has already occurred. This fund is not meant to help climate-vulnerable countries mitigate their emissions or plan adaptation projects like sea walls or water reservoirs, but rather to assist them in paying for damages that have already been caused by specific climate-linked incidents such as storms, floods, heatwaves, or other extreme weather events.
The fund is primarily intended for use by less wealthy, developing countries in the Global South due to their severe losses and damages tied to climate change, as well as their minimal contributions to the climate change that is already harming them. More than $650 million has been pledged so far, but these pledges are inadequate to cover the scale of loss and damage developing nations are facing. An estimated $290 to $580 billion is needed annually by 2030 to address these needs.
As the fund’s financial deployment continues to be discussed to ensure it serves those most in need, one aspect is frequently lost in the conversation: how countries will use the money when they receive it. National leaders emphasized that the fund would not only pay for past damages but also help fortify their people against future losses. They oppose a debt-based structure, as it would saddle them with costly interest payments, preventing their future investments needed to continue strengthening their countries against climate change. Many countries already have the capacity needed to confront the climate crisis; they are just seeking the resources necessary to act on them.
Vanuatu, a South Pacific country, has long advocated for loss and damage funding due to the increasing climate-related occurrences battering the islands. International loss and damage funding would allow Vanuatu to create its own national fund, help rebuild lost villages, reestablish taro gardens, and plant thousands of coconut and cacao trees, among other things.
Mozambique urgently needs loss and damage funding, especially after recent deadly cyclones that resulted in a large number of displacements and loss in crops. The country aims to use the fund to assist in housing those displaced, boosting the economy by rebuilding infrastructure, and reconstruction.
Even Botswana faces the impacts of climate change, particularly from intensifying drought cycles that are jeopardizing crop survival and livestock feeding. The country hopes to use the fund to save their industries and offer assistance to farmers, pastoralists, and wildlife.
The loss and damage fund is expected to substantially alleviate the harsh impacts climate change has imposed on countries around the world, and the details of its implementation will continue to be discussed for greater success.
