COP27 Reaches Breakthrough Agreement on ‘Loss and Damage’ Funding

COP27 Reaches Breakthrough Agreement on ‘Loss and Damage’ Funding

The UN Climate Change Conference COP27, held in Egypt’s resort town of Sharm al-Sheikh, reached an unprecedented breakthrough agreement to provide “loss and damage” funding for vulnerable countries hit hard by climate disasters.

Despite the step forward in loss and damage funding, summit parties were unable to agree on other files. Issues of contention will be discussed in the UAE, which will host the COP28 summit next year. These files include the mechanisms by which the loss and damage fund will be implemented, and steps needed for lowering emissions.

According to the COP27 closing statement, governments agreed to establish a “transitional committee” to make recommendations on how to operationalize both the new funding arrangements and the fund at COP28 next year.

The first meeting of the transitional committee is expected to take place before the end of March 2023.

E3G, a climate change think tank, welcomed the breakthrough with great caution. Despite saying that agreeing to the loss and damage fund was a historic step forward, it warned that it ushers in the beginning of an unresolved battle.

“Climate impacts were the central thread at COP27, with a huge change in politics from last year, and remarkable diplomatic efforts in the last weeks. A historic