Climate experts convened at COP28 in Dubai on Thursday, enthusiastically finalizing a fund designed to aid countries grappling with climate change-induced loss and damage. The meeting’s first day saw nearly all participating nations endorsing the initiative.
Sultan al-Jaber, COP28’s president, proudly hailed the agreement as “the first decision to be adopted on Day One of any COP.” His country, the United Arab Emirates, pledged $100 million to the fund, with other nations, including Germany, making similar high-value commitments.
The creation of the fund addresses a long-standing concern of developing nations, who are disproportionately affected by climate disasters. Despite contributing minimally to the problem — with industrialized countries historically emitting the majority of heat-trapping carbon emissions — they face significant challenges in procuring adequate funding for disaster response.
Joe Thwaites, a senior advocate at the Natural Resources Defense Council, noted the unprecedented nature of the immediate pledges following the fund’s approval.
Avinash Persaud, Barbados’ special climate envoy and a participant in the fund’s finalization talks, recognized the agreement as a positive step. However, he stressed the need for substantial contributions, stating, “This fund needs to be a $100 billion-a-year fund, and we won’t get there overnight. That’s a lot of money. That’s more than half of all of the aid budgets in the entire world.”
Lola Vallejo, Climate Programme Director at the sustainable development think-tank IDDRI, lauded the fund’s creation as “a great and a very constructive start.” However, she raised questions about eligibility and the sustainability of financing.
Despite unresolved details about the fund’s size, its long-term administration, and other aspects, experts viewed the agreement as a significant demonstration of global unity. The initiative provides hope for addressing the devastation left by natural disasters such as September’s Tropical Storm Daniel in Libya and Cyclone Freddy, which hit several African nations earlier in the year.
While initial steps toward creating the fund were made at the previous U.N. climate conference in Egypt, the finalization of the fund marks a significant accomplishment.
A recent United Nations report estimates that developing countries will require up to $387 billion annually to adapt to climate-driven changes. The World Bank will host the fund for the next four years, with plans to launch it by 2024. Representation on its board will include a delegate from a developing country.
