Historic deal struck at COP27 as rich nations create loss and damage fund for poor nations

After nearly three decades of inexhaustible effort, a historic "loss and damage" deal has been struck at the COP27 summit on Sunday, wherein the poorer nation will get compensation from the countries responsible for damaging the environment over the centuries. According to the latest development, a separate fund will be established with the aim of providing compensation to the poorer countries facing the brunt of climate change, despite the fact they have contributed less to pollution. The latest deal is considered a big win for poorer nations which have been demanding the mechanism of reimbursing cash to poorer nations. They argued that they are often the victims of climate-worsened floods, droughts, heat waves, famines and storms.

“This is how a 30-year-old journey of ours has finally, we hope, found fruition today,” said Pakistan Climate Minister Sherry Rehman, who often took the lead for the world’s poorest nations. She cited the example of a recent devastating flood that submerged one-third of her nation this summer. The deal has been also applauded by ministers of other countries who have invested their immense time and resources to win the battle against the rich nations. Harjeet Singh, head of global political strategy at Climate Action Network International, underscored that the agreement offers hope to the vulnerable section who have been still facing the brunt of climate change. Singh noted that the fund will help them to recover from climate disasters and rebuild their lives. 

Rich nations yet to fulfil promises made during the 2009 UN Climate summit

As per the agreement brokered during the 2022 United Nations Climate Change Conference, the fund would initially draw on contributions from developed countries and other private and public sources such as international financial institutions. As of now, China, which is also responsible for contributing a major chunk of pollution, will not pay the compensation, but the proposal will be tabled in the next few years. This is a critical demand by the European Union and the United States. Both argue that China and other large polluters currently classified as developing countries have the financial clout and responsibility to pay their way.
It is worth mentioning that in 2009, developed nations had promised to spend $100 billion a year on climate aid. The main intention of the then agreement was to help poor nations develop green energy and adapt to future warming. But, it is still not fulfilled. 

Image: @COP27P/Twitter