Loss and Damage Decisions, Pitfalls and Promises

Loss and Damage Decisions, Pitfalls and Promises

  • At COP27 Egypt, Decision to create a Loss and Damage Fund was a significant highlight.
  • Decision also includes a transitional committee to prepare elements relating to the operationalisation of the fund. Committee will submit its report at COP28 next year
  • Historically, Climate change negotiations were mitigation centric i.e. Reducing Greenhouse Gas emissions, to suit the agenda of Developed countries.
  • While developing countries want to equally emphasise on Adaptation i.e. Capacity building to deal with adverse effects of Climate change.
  • Till now, the basis for contribution to various funds under COP is common but differentiated responsibilities and respective capabilities (CBDR). It accounts for the fact that developed countries historically responsible for climate emissions, bear most responsibility to reduce them.
  • The Loss and Damage fund would also draw upon sources like a windfall tax on oil and gas companies profits, as advocated by UN Secretary General, Antonio Guterres .(Windfall Tax- A higher tax rate on sudden big profits)
  • The German backed “Global Shield Scheme against Climate risks” is part of COP27’s decision. The shield is aimed at increasing pre arranged finance to be disturbed before or just after the disaster happens.

(Credits: The Economic Times)

What is COP?

COP (Conference of Parties) is annual conference of countries under United Nations Framework Convention on Climate Change (UNFCCC), 1992. UNFCCC is an umbrella framework under which climate negotiations take place.

UNFCCC is non binding in nature.

COP27 (2022)- It was held at Shram El Sheikh, Egypt. More than 92 heads of state and an estimated 35,000 representatives, or delegates, of 190 countries attended the conference.

Important Conferences-

COP3 (Kyoto, Japan,1997)- Legally binding targets for developing countries to reduce emissions.

COP21 (Paris, France, 2015)- To keep rise in global average temperatures well below 2 degree Celsius, compared to pre industrial times, by 2100. Endeavour will be to limit rise to 1.5 degree Celsius. It also provides for $100 billion finance per year from 2020 by Developed countries to fight climate change.

Way Forward-

Sharing of Climate finance and technology by developed countries in accordance with common but differentiated responsibility principle to achieve goals enshrined under Paris Agreement.

NEWS- Loss and Damage decisions, Pitfalls and Promises

Syllabus- GS-3; Climate Change.