USA becomes villains in discussion of climate loss and damage – 10/21/2023 – Environment

A key outcome of the UN climate summit in Egypt, COP27, is in jeopardy as the United States leads a push for the World Bank to administer a new fund to help poorer countries suffering from climate change. The movement led a group of nations that oppose this idea to threaten to abandon the negotiations.

Representatives from the G77 nations plus China, including a large coalition of developing countries, have considered abandoning discussions on the so-called loss and damage fund underway in Aswan, Egypt, according to people familiar with the talks.

The agreement to create a loss and damage fund to help “particularly vulnerable nations” was celebrated by leaders from Africa and other developing countries at the last UN climate summit, COP27, in Sharm el-Sheikh.

Since then, countries have been trying to work out the details of how this would work and where the money would come from before COP28 in the United Arab Emirates, which starts in about six weeks.

The lack of agreement would be a blow for the next summit.

Pedro Luis Pedroso Cuesta, the Cuban president of the G77+China group, said ongoing negotiations this week are deadlocked due to critical differences, including the issue of money and the fund’s governance arrangements.

The G77 rejected proposals from the US and European Union for the fund to be hosted by the World Bank, following “extensive” discussions with the lender this week.

Opposing nations initially wanted an independent fund, but Pedroso Cuesta said the group is now open to it being hosted elsewhere, such as at a UN organization or another multilateral development bank.

However, he said the United States was not willing to negotiate where the fund would be based. “We are faced with an elephant in the room, and that elephant is the United States,” he said. “We are faced with a very closed position that it is [o Banco Mundial] or nothing.”

Christina Chan, a senior adviser to US climate envoy John Kerry, said it is “inaccurate” and “irresponsible” to suggest the United States is being “obstructionist”.

“We are working diligently at every step to address concerns, resolve problems and find solutions,” Chan said, adding that the United States has been “clear and consistent” about the need to fulfill the COP27 commitment to create a loss and damage.

Pedroso Cuesta argued that the World Bank, which provides loans and grants to governments in poorer nations, does not have a “climate culture” and often takes too long to make decisions, meaning it can struggle to respond quickly to climate-related crises. , such as the severe floods in Pakistan last year.

G77 members also said they were concerned that if the fund had to operate under the World Bank’s legal framework, there could be difficulties in accepting broader sources of resources, such as philanthropy or capital markets.

But the World Bank said that “helping countries fight climate change is at the heart of the World Bank’s development work.”

The bank “committed to working with countries once they agree on how to structure the loss and damage fund,” he added.

A big unresolved question is who finances the fund. The G77 has argued that developed countries should lead, but the United States is interested in countries like China and Saudi Arabia also making significant contributions.

With just one day left for negotiations between the transition committee tasked with designing the loss and damage fund, Pedroso Cuesta said it is urgent for developed countries to listen to the concerns of developing countries.