The COP27 president proposed that the details of the funding will be finalised during COP28, which will be held in November-December 2023
Photo: @LossandDamage / Twitter
Finally, there is some hope at the end of the tunnel for COP27 negotiations. The COP27 Presidency released a draft text November 19, 2022, in which it proposed to create a loss and damage finance facility at Sharm El-Sheikh, with the details to be worked out later.
The latest development is broadly in tune with developing country groups’ demand. The onus is now on developed countries either to accept or reject the proposal.
The draft of the overall cover text is also out, consisting of 100 points. But the loss and damage funding faculty is being left out for negotiations which are to take place on the separate draft text circulated.
The Presidency released the document at 1 pm local time or 4.30 pm Indian Standard Time. In it, the Presidency acknowledged:
The urgent and immediate need for new, additional, predictable and adequate financial resources to assist developing countries that are particularly vulnerable to the adverse effects of climate change in responding to economic and non-economic loss and damage associated with the adverse effects of climate change, including extreme weather events and slow onset events, especially in the context of ongoing and ex post (including rehabilitation, recovery).
The Presidency pointed out that the proposed new funding arrangements were for assisting developing countries in responding to loss and damage. This includes a focus on addressing loss and damage by providing and assisting in mobilising new and additional resources.
It added that these new arrangements complement the existing arrangements for financial support from other sources, funds, processes and initiatives, including outside the United Nations Framework Convention on Climate Change and the Paris Agreement.
They thus open up the possibilities for German initiatives like the Global Shield.
The Presidency draft also talks about establishing “a transitional committee on the operationalisation of the new funding arrangements for responding to loss and damage and the fund established”.
The president proposed that the details of the funding will be finalised during COP28, which will be held in November-December 2023, with a view to operationalising the funding arrangements.
His draft pointed out the setting up of “institutional arrangements, modalities, structure, governance and terms of reference of the fund”.
The draft talks about “the current landscape of institutions, including global, regional and national, that are funding activities related to addressing loss and damage”. It also notes the “ways in which coherence, coordination and synergies among them can be enhanced”.
It says “the gaps within that current landscape, including the types of gap, such as relating to speed, eligibility, adequacy and access to finance …” will be addressed.
Solutions will be explored for priority gaps and also how these gaps may be addressed in the most effective ways while considering vulnerable populations and the ecosystems on which they depend.
The draft has also requested the Secretariat to prepare a synthesis report on existing funding arrangements and innovative sources relevant to addressing loss and damage associated with the adverse effects of climate change.
It has invited Parties and relevant organisations to submit views on topics for and the structure of the Second Glasgow Dialogue and the workshops via the submission portal by February 15, 2023.
“The draft decision on loss and damage finance offers hope to vulnerable people that they will get help to recover from climate disasters and rebuild their lives,” Harjeet Singh, head of Global Political Strategy, Climate Action Network International, said.
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