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| Sun, 20th Nov 2022 12:24:00 |
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What is loss and damage and will rich nations pay for climate change? |
World leaders have reached a historic deal to give money to developing nations facing the effects of climate change.
The creation of a fund for "loss and damage" is seen as a breakthrough, but previous promises of payments are still to be met.
What do countries want money for?
Money for climate action broadly falls into three buckets:
Loss and damage
This money is to help developing countries recover from the effects of climate change they are already suffering.
For example, in the past 12 months alone the developing world has experienced severe climate-related crises - from flooding in Pakistan to drought in East Africa.
Money for disasters is often already available via humanitarian aid.
However, developing nations want guaranteed compensation from developed countries - who they say are historically responsible for climate change.
Developed nations recognise that money needs to be given for this. However, framing the payments as reparations is controversial and they are wary of accepting liability on these terms.
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Mitigation
This is money to help developing nations move away from fossil fuels and other polluting activities. This is where most money has been given to date.
Many countries still have coal power stations that are yet to reach the end of their lives. They need support to switch to clean energy, such as solar farms.
Adaptation
This is money to help developing nations prepare for the worst effects of climate change.
It is different to loss and damage as it is focused on the future.
The needs vary depending where in the world the country is, but may include:
building stronger flood defences
relocating populations at risk
developing storm proof housing
distributing crops that are more resilient to dry spells
What is the agreement on loss and damage?
More than 200 nations agreed to create a loss and damage fund.
Developed nations will give to the fund, which will then be distributed to "particularly vulnerable" nations.
At last year's COP26 conference, loss and damage did not even feature on the agenda - so this is significant progress.
There are still many details to be ironed out, including how much richer nations will pay and how money will be distributed.
It is hoped a series of workshops early next year will iron this out.
But strong concerns have been raised that the fund could be undermined by the lack of progress on agreements to reduce emissions.
Katie White, of the World Wildlife Fund, said the loss and damage deal "risks becoming a down payment on disaster unless emissions are urgently cut in line with the 1.5C goal".
What money has been given so far?
In 2009, richer countries agreed to provide $100bn (£88bn) a year to developing nations for climate action by the end of 2020.
But by the end of that year the total was $83.3bn (£73bn). The goal is expected to be reached in 2023.
The majority, 82%, of this money came from public funds, with the remainder from the private sector, according to the OECD.
But analysis, commissioned by the UN, suggests the private sector could deliver 70% of future investments needed to meet climate commitments.
A coalition of more than 550 private firms have committed to use $130 trillion of assets to help achieve net zero.
Are developing countries getting enough money?
Not only are the existing promises of climate finance not currently being met, but developing countries argue the targets are too low.
At last year's climate summit in Glasgow, the G77+ China alliance of developing countries called on richer nations to mobilise at least $1.3 trillion (£1.14 trillion) by 2030. They argued that this should be split equally between reducing emissions and preparing for climate change.
Currently, only 34% of climate finance goes towards helping developing countries adapt to climate change, according to the OECD's latest figures.
Also the majority of the public funding, 71%, is still given in the form of loans rather than direct grants. This can increase the debt burden in poorer nations.
Nafkote Dabi, Oxfam International Climate Policy lead, has called this "profoundly unfair".
He said: "Instead of supporting countries that are facing worsening droughts, cyclones and flooding, rich countries are crippling their ability to cope with the next shock and deepening their poverty."
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