Developing nations hopeful as EU agrees to loss and damage fund

Loss and damage has dominated talks at COP27, as developing nations struggle with climate disasters which destroy infrastructure and livelihoods.  

Now it looks like there’s been a breakthrough in their quest to get funds to help them, as the European Union has agreed to provide financial assistance.

The G77, a coalition of developing nations, has been urging rich countries to set up a fund throughout COP27, but has received opposition from major polluters the US and China.

EU vice-president, Frans Timmermans, said the commission had launched a proposal to set up a fund which would have clear conditions attached to ensure stronger ambition on cutting emissions.

Developing nations are still considering the proposal which has left some feeling hopeful a decision on loss and damage could finally be made.

The finance minister of Pacific island Tuvalu, Seve Paeniu, told the Guardian: ‘They are now agreeing to setting up a response fund. To me, that is a major concession and major breakthrough. It is our hope that will be ending up in the text of the conference decision.’

But many remain disappointed that the draft text still does not contain any reference to phasing out fossil fuels, the primary cause of climate breakdown. Currently the text retains the same agreement from last year to phase down coal use.

Both the COP27 President Sameh Shoukry and UN Secretary General António Guterres have expressed concern over the slow negotiations taking place, urging delegates to make the difficult decisions.

‘I urge all [countries] to go the extra mile, take the necessary steps to reach the much-needed conclusions and agreements,’ said Shoukry yesterday. ‘The world is waiting for us to demonstrate the seriousness by which we tackle this matter, and as a community of nations we must live up to their expectations.’

Photo by Ross Stone