UN's COP28 launches climate 'loss and damage fund'

The UN's COP28 climate conference formally launched a "loss and damage" fund long sought by vulnerable nations devastated by natural disasters linked to global warming.

"We have delivered history today," the UAE's COP28 president Sultan Al Jaber told delegates on Thursday, adding that his country was committing $100M to the fund.

Germany also pledged $100M.

After years of dragging their feet on the issue, wealthy nations backed the fund in a landmark agreement at the COP27 summit in Sharm el Sheikh last year.

Its launch on the first day of COP28 in Dubai follows fraught negotiations on the mechanics of the fund, which will be housed at the World Bank on an interim basis.

'COP28 can deliver'

"This sends a positive signal of momentum to the world and to our work," Jaber said.

Jaber said it was "the first time a decision has been adopted on day one of any COP and the speed in which we have done so is also unique, phenomenal and historic".

"This is evidence that we can deliver. COP28 can and will deliver," he added.

A recent report by the United Nations estimates that up to $387B will be needed annually if developing countries are to adapt to climate-driven changes.

Some activists and experts are skeptical that the fund will raise anything close to that amount.

A Green Climate Fund that was first proposed at the 2009 climate talks in Copenhagen, and began raising money in 2014, hasn’t come close to its goal of $100B annually.

The fund will be hosted by the World Bank for the next four years and the plan is to launch it by 2024. A developing country representative will get a seat on its board.

A number of industrialised nations have insist that all countries should contribute to the fund, and the agreement will prioritize those most vulnerable to climate change — even though any climate-affected community or country is eligible.