COP28: EU, Germany, UAE, Others Pledge $550m To Boost Climate Change Financing

The new funding arrangement meant to pay for damages caused by climate change has received nearly $550m commitment from countries showing solidarity for the climate-related damages resulting from the use of fossil fuels.

The COP28 climate summit officially opened in Dubai on Thursday, with countries hoping to seal an early deal on a new fund to pay for climate-caused damage.

Since the Paris Agreement was reached, developing countries in Africa, the Americas and Asia have advocated for climate justice and a just transition to net zero.

Fortunately, members adopted the decision to establish the operationalisation of the Climate Loss and Damage Fund at the opening plenary of COP28, monitored by THE WHISTLER.

The fund saw over $200m commitment by developed countries in less than 20 minutes of the adoption.

Announcing the first pledge, the COP28 president, Sultan Al Jaber, said “His Highness Sheikh Abdullah bin Zayed bin Sultan Al Nahyan the Minister of Foreign Affairs of the United Arab Emirates and Chair of the COP28 higher committee has just announced the UAE’s commitment of $100m towards the capitalisation and operation of the fund.”

Al Jabar said the COP28 presidency is committed to delivering outcomes for the climate vulnerable.

Svenja Schulze, Germany’s Federal Minister for Economic Cooperation and Development, pledged $100m on behalf of the German Chancellor.

She said, “It is really a groundbreaking decision for solidarity for the most vulnerable, and the package adopted today is the outcome of hard work in the transitional committee throughout this year. Now, we need to move from words to action.”

The UK government expressed delight in the establishment of the funding arrangement and pledged 60 pounds for loss and damage.

This includes £40m for the new fund and another £20m for further arrangements.

The United States on its part pledged $17.5m specifically towards the fund for climate impact response that will help vulnerable countries respond to the impacts; $4.5m for the Pacific Resilience Facility and another $2.5m for the Sandiago Network.

Japan pledged $10m for the start-up of the fund, adding that the fund is about solidarity and urged other countries with the capacity to contribute to the new funding arrangement.

The EU and its member states announced an aggregate of €225m ($245.5m) to the fund.

Iran called for transparency in the fund’s operation when it became fully operational.

Similarly, the $100bn mark climate finance goal reached $89.6bn. The mark was met in 2022, according to the Germany and Canadian delegates, adding that it would be exceeded in 2023.