CoP-27: Historic Loss-and-Damage Fund Launched as Nations Boost Climate Commitments
The 27th Conference of the Parties (CoP-27) in Sharm el-Sheikh, Egypt, witnessed significant developments in global climate action. Key among them was the launch of the Sharm el-Sheikh Adaptation Agenda, a comprehensive plan for adaptation objectives by 2030. Additionally, a new fund was established to address loss and damage from climate-related disasters, a long-standing demand from developing nations.
The conference saw countries like Germany, the UK, and Canada unite under the 'Breakthrough Agenda'. This initiative aims to make clean technologies more affordable and accessible worldwide, backed by the Climate Investment Funds (CIFs). The agenda set an action plan for 45 countries, including India and the US, to achieve this goal.
India, one of the world's largest emitters, has committed to achieving net-zero emissions while balancing its growth aspirations and ensuring a 'just transition'. The country's annualized average loss from climate-related hazards stands at a staggering $93 billion, equivalent to 3.35% of its GDP. At CoP-27, India launched its Long-Term Low Emissions Development Strategy (LT-LEDS), focusing on mitigation, adaptation, and implementation means.
The conference also addressed the long-standing issue of compensation for developing countries affected by climate-related disasters. A 'new collective quantified goal on climate finance' will be set in 2024, taking into account the needs and priorities of these countries. The Global Financial Alliance for Net-Zero (GFANZ) also released guidance for financial institutions to plan net-zero transitions.
CoP-27 concluded with a historic decision to establish a loss-and-damage fund for vulnerable countries, to be operationalized at CoP-28 in 2023. This fund is a significant step towards addressing the climate crisis, particularly for developing nations. The conference demonstrated a renewed commitment to international cooperation and ambitious climate action.
