COP27 approves historic compensation fund

At the end of a turbulent negotiation, which lasted more than 24 hours, the delegations also agreed to work towards a “rapid, deep and sustainable” reduction in greenhouse gas emissions to “continue efforts to limit the increase temperature (of the planet) at 1,5ºC”.

The almost 200 members of the COP27 they needed to negotiate until the early hours of Sunday to reach a final text agreement, which generated adverse reactions. Despite long negotiations, the text does not specifically mention the need to abandon fossil fuels, as the European Union and several countries wanted.

“Our planet is still in the emergency room. We need to drastically reduce emissions now and this is an issue that this COP did not address,” said Guterres.

“What we have before us is not enough. It does not present the additional efforts needed for major emitters to increase and accelerate their emissions cuts,” said European Commission Vice President Frans Timmermans.

Transition Committee

Calculating the direct and indirect impact of climate change is very difficult and some amounts are astronomical. According to the Grantham Institute, losses and damages could range between US$290 and US$580 billion per year by 2030.

A transition committee made up of 24 countries, including three from Latin America and the Caribbean, will work out details on the operation and financing of the initiative for a year, with the aim of obtaining approval at COP28, at the end of 2023, a year before from the expected deadline until now.

The financing will basically fall on rich countries, those that contributed most to global warming.

But one of the lines of work established this Sunday foresees “expanding sources of financing”, which leavesaria The window has opened for the participation of countries like China, a demand expressed by the European Union and Canada, among others.

The Chinese representative, Xie Zhenhua, argued that developing countries' participation in the fund should be “voluntary”.

The COP27 agreement also invites the World Bank and the International Monetary Fund to present “financing solutions”.

Losses and damages

The idea of ​​a loss and damage fund began to be negotiated three decades ago, when the most vulnerable countries began to demand compensation for climate change, for which they were not historically responsible.

“The agreements reached at COP27 are a triumph for the whole world. We show those who considered themselves undervalued that we hear them, see them and respect them”, says a statement from the Alliance of Small Island States (AOSIS).

The fund, which will not be operational immediately, will provide “predictable and adequate financing to especially vulnerable developing countries,” according to the document.

More negotiations

The COP27 final declaration also mentions the current global energy crisis, which was discussed during the two weeks of the COP, and highlights “the importance of reinforcing a combination of (sources of) clean energy”, without forgetting “the national circumstances” of each country.

Another point under debate in Sharm el Sheikh was the future of long-term financing for adaptation to climate change and mitigating greenhouse gas emissions.

In 2009, developed countries promethey will have to release from 2020ariam US$100 billion per year to help poor countries adapt to climate change and reduce their emissions, while at the same time starting the energy transition.

And the value of US$ 100 billion, which was not reached, must be increased, in principle, from 2025. COP27 chose to postpone the decision on the issue until the climate conference scheduled for November 2024. (With AFP)

The United Nations (UN) International Conference on Climate Change – COP27 – began on November 6, in the Egyptian resort of Sharm el-Sheikh. COP is the UN's major annual event whose objective is to discuss actions aimed at combating climate change. 

(With AFP)