The EU has proposed at the COP27 climate summit the establishment of a so-called 'loss and damage' fund for developing countries to help them cope with the effects of climate change, but only in exchange for higher ambitions on emission reduction.
The COP27 climate summit in Egypt, which ends today, has seen days of deadlocked talks on the loss and damage fund, with developing nations insisting there should be a formal adoption of such as fund, not just pledges for monetary support from various developed countries.
The developing countries have insisted that "for us it's very, very important to have a fund," Frans Timmermans, Executive Vice-President for the European Green Deal at the European Commission, told reporters in Sharm El Sheikh early on Friday.
"If that is the only way we are going to have an agreement here, we could propose a fund but under two conditions," Timmermans said. One is the fund should target the most vulnerable, and the other condition is a drastic reduction in emissions from those countries
The EU has presented a proposal that could see COP27 agree to a loss and damage fund that targets the most vulnerable and reflects the financial realities of 2022. It must go hand-in-hand with a higher ambition for emissions reductions, Timmermans noted.
Without a significant cut in emissions in developing countries, including in China, "there is no amount of money on this planet to address the issue" of climate change, Timmermans added.
In an initial draft of an agreement published on Thursday, the COP27 summit reiterated the global pledge to accelerate efforts to limit the global temperature increase to 1.5 degrees Celsius above pre-industrial levels, but many questions are left unanswered ahead of the final document that will be published later on Friday. The first draft doesn't call for the phase-out of coal-powered generation or fossil fuels subsidies, in a language environmental organizations described as even weaker than the one in the final pledges of the COP26 summit in Glasgow last year.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. More
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