The group, which included members from different regions of the world, made the decision to suggest the World Bank as the trustee and host organization for the fund.
Efforts to address the issues posed by climate change in developing countries have seen notable progress. On Saturday, November 4, amid apprehensions from the United States and other developing countries, progress was achieved in the establishment of a vital fund intended to assist these states.
A deal was struck to create a “loss and damage” fund for developing countries during the UN climate conference that were held in Egypt last year.
The agreement, which was hailed as a historic achievement, triumphed against wealthy nations’ long-standing resistance. However, identifying details such as fund donors and location has been challenging, leading to a standstill after only 11 months.
The task of resolving these issues was assigned to a UN committee during its sixth meeting this week in Abu Dhabi. With the goal of opening the fund by 2024, the goal is to complete these suggestions in time for the COP28 annual climate meeting, which will take place in Dubai in less than a month.
The World Bank’s Function and Fund Distribution
The group, which included members from a range of geographic backgrounds, made the decision to suggest the World Bank as the trustee and host organization for the fund.
However, there has been disagreement over this idea between industrialized and poor countries. Opponents contend that the fund’s hosting by The World Bank, whose presidents are chosen by the US, might give donor countries excessive power and force recipient countries to pay exorbitant fees.
A deal was reached for the World Bank to act as a temporary trustee and host for the first four years in an effort to appease all stakeholders. Germany’s climate ambassador, Jennifer Morgan, not only applauded this action but also stated that her country is willing to contribute to the fund and look into further funding sources.
An Appeal for Ongoing Assistance
The fund’s formation was not without its challenges. As a matter of fact, Harjeet Singh, who oversees worldwide political strategy for the nonprofit organization Climate Action Network International, brought attention to the seeming lack of concern that wealthier nations have for impoverished areas. His remarks are in line with the committee’s recommendation that wealthy countries continue to support the fund.
But the question of whether these more affluent countries ought to make financial contributions remained unanswered. An official from the US State Department conveyed the country’s displeasure with the committee’s refusal to provide clarification on the donation’s voluntary nature by expressing dissatisfaction over the lack of agreement on this topic.
However, the president of the upcoming COP28 summit, Sultan Al-Jaber, praised the committee’s efforts. He expressed hope that these suggestions would be a first step toward a COP28 consensus.
