COP27 creates 'Loss and Damages' fund for climate reparations
Malawi has yet to repair 129 megawatts, or 30% of total national grid power, which was lost after floods caused by tropical storm Ana in February this year damaged parts of the Kapichira power plant.
Sharm El Sheik, Egypt: Delegates to the UN climate change summit—COP 27--agreed on Sunday to create a 'Loss and Damages' fund to compensate the most vulnerable countries for damages caused by climate-related disasters, after hours of negotiating past the deadline.
Parties have also agreed to double adaptation funds, but all decisions will be subject to extensive technical consultations before being implemented.
A decision paper released by the United Nations Framework Convention on Climate Change UNFCC shows that representatives of 23 countries who are parties to the UNFCCC 10 from developed countries and 13 from developing countries will form a transitional committee that will lead technical consultations on L and D fund operationalization.
The text indicates that the committee has three members from Africa, including a representative of the President of COP 27, three members from Asia-Pacific, including a representative of the incoming President of COP 28, three members from Latin America and the Caribbean, two members from small island developing states, and two members from least developed countries.
In response to the news, one of Malawi's lead negotiators, Yamikani Idriss, an Environmental Officer at the Ministry of Natural Resources and Climate Change, stated that the approval partially reflects the wishes of the Least Developed Countries LDCs.
Said Idriss: “We have achieved most of our priorities. Malawi will benefit from the funding arrangements under loss and damage. Malawi is already doing some work with funding from the Scottish Government and we believe we are ready for any loss and damage support.
“Malawi will also enhance its Adaptation capacity through the implementation of Adaptation projects from the doubling of Climate finance decision.”
This year's climate change talks were supposed to end on Friday but were extended by a day to allow parties to agree on loss and damage funding, among other things, as demanded by poor countries.
Least Developing countries had been hampered by the global north's resistance to their demands. However, a breakthrough in loss and damage occurred on Friday, when the European Union agreed to developing-world demands for financial assistance for poor countries.
This follows European Union Vice President Frans Timmermans' statement at the summit, in which he proposed on behalf of the EU that the loss and damage fund be established.
“We were reluctant about a fund; it was not our idea to have a fund. My reluctance was because I know from experience it takes time before a fund can be established, and more time before it is filled, whereas we have existing instruments. I really believe we could move faster with existing instruments (for climate finance). But since the developing countries are so attached to a fund, we have agreed.” Timmermans said.
Loss and Damage refer to funds paid by the richest, most carbon-polluting countries to assist poorer countries on the frontlines of the climate crisis, such as Malawi, in recovering from losses and damages caused by climate-related events such as floods, storms, and droughts.
Malawi and other developing countries were pleased to see loss and damage on the agenda, but the excitement may be short-lived because most rich countries are opposed to creating a special fund for loss and damage, arguing that it would take too long to set up.
Malawi has yet to repair 129 megawatts, or 30% of total national grid power, which was lost after floods caused by tropical storm Ana in February this year damaged parts of the Kapichira power plant.
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