COP28 Summit Anticipated to be a Battleground Following Strained Discussions on Climate Compensation Mechanism

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Strained deliberations concluded on Saturday in Abu Dhabi over the establishment of a loss and damages fund, a pivotal financial mechanism aimed at assisting economically disadvantaged nations bearing the brunt of climate change. The outcome of the meeting was the interim decision to place the fund under the stewardship of the World Bank for a four-year period.

Dissent has emerged among the United States and various developing nations regarding the draft accord, slated for ratification at the upcoming COP28 summit in Dubai this month.

A statement from the U.S. State Department postulated a partial accord with the consensus reached at the Abu Dhabi negotiations, which supported voluntary contributions to the fund. However, this element is conspicuously absent from the conclusive agreement.

The accord delineates foundational objectives for the fund, projected to be operational by 2024, and clarifies governance structures, including the incorporation of developing nations on its governing board, alongside the World Bank’s involvement.

Avinash Persaud, Barbados Prime Minister Mia Mottley’s special envoy for climate finance, characterized the agreement as arduous yet indispensable, where the equilibrium of dissatisfaction could be indicative of a successful negotiation. Persaud, who represented Latin America and the Caribbean, highlighted that an impasse would have had adverse repercussions on COP’s atmosphere.

Mohamed Nasr, Egypt’s principal negotiator and the host of the preceding year’s climate summit, critiqued the agreement for not adequately addressing funding magnitude and sources, as well as for neglecting the financial burden already borne by developing nations.

The inception of a support fund for economically vulnerable nations impacted by climate change has been a central theme of U.N. climate discussions for the past three decades, with the concept coming to fruition at last year’s summit in Egypt.

Subsequent to this breakthrough, select groups representing affluent and developing nations have convened on multiple occasions to refine the fund’s particulars. Their latest negotiation in Aswan, Egypt, in November, however, concluded without resolution.

Climate policy experts, while recognizing the accord as a step forward from a deadlock, caution that numerous deficiencies must be addressed for the fund to effectively aid impoverished communities globally that are increasingly afflicted by climate catastrophes.

The sessions achieved their intended purpose, though far from a triumph, opined Brandon Wu from ActionAid USA, who has been tracking the discussions. Wu criticized the fund for its minimal demands on developed nations and its failure to address the needs of the developing countries it is meant to assist.

Sultan al-Jaber, the United Arab Emirates’ federal minister and CEO of Abu Dhabi National Oil Company, who will preside over COP28, expressed approval of the negotiation outcomes, stressing the crucial dependence of billions affected by climate change on the enactment of this recommended strategy at COP28.

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This article has been revised to correct the schedule of the COP28 climate conference.

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AP Science Writer Seth Borenstein in Washington contributed to this report.

Follow Sibi Arasu’s updates on X, previously known as Twitter, at @sibi123

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