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- In the first week of COP28, pledges toward the new loss and damage fund exceed $700 million.
- However, the need to assist developing nations most vulnerable to climate impacts is far greater, with estimates indicating hundreds of billions.
- SA's chief negotiator, Maesela Kekana, says a board for the fund will be appointed to determine how to mobilise more resources.
- For climate change news and analysis, go to News24 Climate Future.
The first week of COP28 saw more than $700 million pledged toward the new loss and damage fund – which is aimed at assisting developing nations most vulnerable to climate impacts. However, this is just the start and "billions" more are needed, said SA's chief negotiator, Maesela Kekana.
The United Nations Climate Conference, or COP28, kicked off with a bang last week with the host nation, the UAE and others pledging about $400 million to the fund. By Sunday, 10 December, the pledges were closing in on $800 million - having climbed to $792 million.
The decision to establish the fund was agreed to at COP27, Sharm el-Sheikh, Egypt. This year, the COP28 presidency led by Sultan Al Jaber claimed an early victory by operationalising the fund at the start of the conference.
"COP28 has been different, and I am sure we all agree that COP28 has already made history… We achieved consensus on the first day with the loss and damage fund, and I believe with the momentum we have, with the action-oriented mindset across the board … I believe we can achieve consensus again on the rest of the [COP28] agenda. I am quite positive, hopeful and optimistic," he said at a press briefing on Friday.
While the new pledges were lauded by officials, including President Cyril Ramaphosa, the glaring truth is that more funding needs to be raised.
READ | COP28 | Ramaphosa slams 'unilateral, coercive' trade measures to tackle climate change
Take the floods in Pakistan last year as an example; more than 7 million people were displaced, and the costs were estimated at $30 billion. Closer to home, floods in the KwaZulu-Natal province in April last year displaced 40 000 people and killed more than 400. In Vanuatu, three cyclones in eight months not only led to economic losses but also the loss of traditional livelihoods and culture.
"Of course, the fund is nowhere near it needs to be," said Saber Hossain Chowdhury, climate envoy for Bangladesh. Chowdhury was speaking at a high-level panel on loss and damage hosted by the International Development Research Centre at COP28.
The other issue is ensuring that countries can access funding. "How can countries most impacted access the fund quickly? There are two things- one is speed, the other is scale," said Chowdhury. "This has to be scaled up."
Popular Gentle, development management expert to the prime minister of Nepal, similarly pointed out that access to climate finance is difficult. "Our concern is we are excited about the establishment of the loss and damage fund. We are still cautious that the same story will be repeated. We need easy, equitable, accessible loss and damage funds without any procedural difficulties," he said.
As for the scale required, a study commissioned by the UN found that the cost of loss and damage costs are estimated to be between $150-300 billion by 2030. This is to deal with immediate impacts and reconstruction. The Guardian reported that pledges so far are less than 0.2% of that which is needed.
Kekana, said the pledges made were "good".
"… But as minister [Creecy] has said in previous interventions, what we need is billions," he said. "...Or even trillions, for that matter, but the millions are a start."
Kekana said a board will be appointed. South Africa will have an opportunity to nominate board members for the fund. The first board meeting will happen on 31 January. The board has to develop strategies to raise more resources. "We are hoping with a board in place and a resource mobilisation strategy in place, we will be able to see the fund attracting more resources," he said.
"By August-October next year, we should see the fund fully operational, with developing countries able to draw the resources from that particular fund," Kekana added.
READ | ANALYSIS | Creecy has 'unenviable' task of making sure SA leaves COP28 with a win for adaptation
Vanuatu's Minister of Climate Change, Ralph Regenvanu, who also participated in the IDRC panel, noted that before climate impacts escalate into loss and damage – steps must be taken to prevent it. This includes efforts to mitigate climate change – by reducing greenhouse gas emissions, especially through the phase-out of fossil fuels.
"Loss and damage fund is a welcome outcome… but it is secondary to the broad outcome that we need at COP28. We're talking about averting loss and damage – mitigation," said Regenvanu.
Chowdhury similarly pointed out that the burden of loss and damage needed to be lightened by focusing on climate mitigation and adaptation or building resilience to existing impacts.
Senegal's Minister of Environment, Sustainable Development and Ecological Transition Alioune Ndoye also shared concerns that developing countries are not mainly responsible for climate change but have become indebted by having to respond to it. He said funding should be provided in grants and not debt.
This article was produced with support from MESHA and IDRC Eastern and Southern Africa office. The IDRC hosted the high-level panel on loss and damage, on which part of this story is based.
