In a historic development during the opening plenary of COP28 in Dubai, the long-awaited Loss and Damage Fund was finally agreed upon, marking a significant victory for developing countries. This move was anticipated to demonstrate a commitment from developed nations to provide financial support for the destruction already underway due to climate change.

However, initial pledges have fallen considerably short of the urgent requirements. Estimates indicate that the loss and damage in developing countries exceed $400 billion annually, with varied estimates ranging from $100 billion to $580 billion. The United Arab Emirates, as the host country, pledged $100 million, matched by Germany, and slightly surpassed by Italy and France, each committing $108 million. Notably, the United States, historically the largest greenhouse gas emitter, and the leading oil and gas producer this year, has pledged only $17.5 million. Japan, the third-largest economy globally, has offered $10 million.

Climate Action Network International’s Harjeet Singh expressed concern, stating,

“The initial pledges of $700 million pale in comparison to the colossal need for funding, estimated in the hundreds of billions annually.”

Harjeet Singh, Climate Action Network International.

Singh highlighted the over 30-year delay in establishing the fund and criticized the meager contributions from affluent nations, particularly the U.S., the largest historical polluter.

Additional pledges include Denmark at $50 million, Ireland and the EU both with $27 million, Norway at $25 million, Canada at less than $12 million, and Slovenia at $1.5 million. Climate justice experts emphasize that the loss and damage funds should be new, additional, and provided as grants rather than loans. However, the lack of