Loss & damage funding makes it to COP27 agenda for the first time ever

Countries agree to 20-point agenda ahead of climate negotiations in Egypt

For the first time in the history of United Nations’ climate negotiations, loss and damage finance will be part of the official agenda of the conference of the parties (COP27) at Sharm-El-Sheikh in Egypt. Countries participating in the negotiations agreed to a 20-point provisional agenda on Sunday.

“Matters relating to funding arrangements responding to loss and damage associated with the adverse effects of climate change, including a focus on addressing loss and damage,” said the COP27 agenda.

Developing countries, including India, small island nations, and several indigenous communities have been batting for a separate fund for loss and damage to tackle the extremes of climate caused by historic polluters (aka the Global North).

Union Minister for Environment, Forest and Climate Change Bhupender Yadav recently said India will also push for equal distribution of aid for mitigation and adaptation, along with renewed demand for loss and damage funds for developing nations.

He inaugurated the India Pavilion at COP27, saying, “India believes that climate action starts from the grassroots, individual level and hence, designed the India Pavilion with the theme of LiFE — Lifestyle for Environment”.

He also felicitated the COP Young Scholars from India who worked towards positive climate change solutions.

“This year it is ‘COP for Action.’ Our focus will be on bringing clarity on climate finance definition and transparency in the process of fund distribution,” Yadav had said last week.

Other significant additions to the agenda are ‘matters relating to the least developed countries’ and ‘long-term climate finance’.

This paper recently reported that as developing nations, especially from the African and the South Asian continent, have a chance to present their demands stronger than ever, it is widely expected there will be enhanced focus on loss and damage funding and climate adaptation solutions. 

Ani Dasgupta, president and chief executive officer, World Resources Institute, said, “Vulnerable nations have tirelessly appealed for help to cope with the alarming and damaging climate impacts that they hold little responsibility for causing. Today, countries cleared a historic first hurdle towards acknowledging and answering the call for financing to address increasingly severe losses and damages.”

The agenda text, however, has steered clear of placing any liability on the historic polluters to fund and compensate for the climate change impact.

“The inclusion of loss and damage finance in the agenda for COP27 has renewed the fight for justice for communities losing their homes, crops, and income. Rich countries, historically responsible for the climate crisis, have bullied poorer nations to protect polluters from paying up for climate damages, while disregarding the concern of vulnerable people and countries,” said Harjeet Singh, head of global political strategy at Climate Action Network-International.

The Indian government last year joined hands with 24 like-minded developing countries to push for climate disaster funding from developed nations, on the ‘polluter pays’ principle. This included several island nations, least developed countries which are in the first line of impact from climate extremes.

However, at the end of the COP26 last year, the negotiating text for the outcome offered no further enhancement to the climate financing budget and only “urged” the developed world to meet the $100 billion per year climate fund target set in 2009. It also steered clear of mentioning a separate fund for loss and damage.

Inputs from Nitin Kumar