As climate change negotiations kicked off in Dubai, countries reached a historic agreement for a new fund to help developing countries which bear the brunt of climate impacts.
More than $400 million was announced, with the largest pledges coming from Germany and the United Arab Emirates, to kick off the “loss and damage” fund. They are the first pledges since the fund was created at climate negotiations last year.
The idea is to aid developing countries that are already dealing with devastating impacts, like hurricanes, droughts and floods. But the initial funding is a tiny fraction of the overall need. A recent United Nations report found it will cost developing countries $215 to $387 billion per year to adapt to climate change.
Before the fund can make a difference on the ground, countries still have a number of issues to sort out, including which countries will pay into it and which countries will receive funding.
“Pledges should be commensurate with the scale of the needs for loss and damage, which is already costing hundreds of billions of U.S. dollars a year,” said Angela Rivera, speaking for Colombia at the COP28 summit. “We need to scale up quickly to make up for 30 years of lost time.”
What is loss and damage?
Here’s the need that one country is facing: the small island nation of Antigua and Barbuda.
Like many Caribbean islands, it’s extremely vulnerable to hurricanes that are becoming more destructive as the climate warms. In 2017, a massive category 5 storm, Hurricane Irma, hit the islands. The storm’s size was larger than the islands themselves and left widespread destruction in its wake.
“You just have to replace every single thing,” says Diann Black-Layne, climate change ambassador for Antigua and Barbuda. “The homes are damaged, and there’s no place to go. And the whole island gets hit – the entire population is affected.”
The cost of rebuilding has been challenging, she says. And rebuilding does not take into account preparing the country for the next storm. The island’s homes and buildings are mainly built to withstand category 2 hurricanes. Upgrading them to withstand stronger storms, by adding features like wind-resistant roofs, just adds to the cost.
On top of that, rising sea levels are threatening coastal development, which means residents will need to be relocated. That also threatens their fresh water supply, as saltwater creeps inland. Dealing with and preparing for the impacts of climate change will cost hundreds of millions of dollars, Black-Layne says.
“We are looking at 2 or 300 percent of our national GDP just to get ready,” she says. “Our way of life and our ability to live here, our ability to even have an economy is threatened.”
How will a loss and damage fund for vulnerable countries work?
For years, developing countries have sought compensation for the damages caused by climate change. Cumulatively, the U.S. and Europe are responsible for the largest share of greenhouse gas emissions going back to the Industrial Revolution. Developing countries are bearing the brunt of the impacts, having contributed little to climate change.
“This climate problem was caused by the industrialization of rich countries,” says Avinash Persaud, special climate envoy for Barbados. “It is, in fact, how they got rich. And so they do need to show recognition and some responsibility in helping to finance the reconstruction and rehabilitation costs of climate impacts.”
