Loss and Damage Fund for COP 27: A Step Forward in the Management of Climate Change

On November 20, the UN Climate Change COP 27 summit in Egypt came to an end with a landmark agreement on a "loss and damage" fund. Poorer and developing nations that have been severely impacted by climate-related disasters will benefit from this fund, which will be funded by developed nations.

A lengthy session at the conclusion of the UN meeting was required to reach this agreement. Pakistan, as chair of the Group of 77 and China, was instrumental in securing support for the agreement by first ensuring that it was included on the conference's agenda and then focusing the necessary attention on getting its approval during the meeting.

At UN Climate Change conferences for nearly three decades, the issue of a loss and damage fund for vulnerable nations has been brought up. However, this was the first time the issue had been officially added to a conference's agenda. Pakistani representatives acknowledged the cooperation of developed nations in recognizing the need for the fund and described the fund's approval as a result of developing countries' exemplary solidarity and steadfastness. It was hailed by Pakistan's foreign minister Bilawal Bhutto Zardari as a significant victory for all those affected by climate change's devastation.

"This outcome moves us forward," declared Simon Stiell, UN Climate Change Executive Secretary.

Pakistan experienced a particularly devastating heat wave and forest fires in 2022, which were followed by unprecedented flash floods, resulting in enormous losses and damages.

“After decades of deliberation about how to address the effects on communities whose lives and livelihoods have been destroyed by the worst effects of climate change, we have determined a course of action. The loss and damage fund is a step in the right direction, but it is only the beginning of what could be a long and difficult process. A transitional committee to recommend the working mechanism for the new funding arrangement is required by the agreement for the government to establish.

It is likely that this committee will meet for the first time before the end of March 2023. In addition, the agreement established the Santiago Network for Loss and Damage to connect developing nations with resources, knowledge, and technical assistance. The manner in which the network will provide that support has not yet been established.

Even though there are still a lot of unanswered questions, Pakistan needs this momentum to move forward. This is because Pakistan has been dealing with the devastating effects of global climate issues for years.

2022 has been particularly devastating for the country due to a historic heat wave, forest fires earlier in the year, and unprecedented flash floods later that year, resulting in enormous losses and damages. "The catastrophic climate change-induced floods in Pakistan early this year that resulted in losses and damages of over US$ 30 billion refocused the global attention on this critical issue," the Pakistan Foreign Affairs Office stated.

Pakistan contributes less than 1% of global greenhouse gas emissions, as I mentioned earlier. Therefore, it is somewhat reassuring to observe that the developed nations that account for the majority of those emissions are beginning to pay attention to the catastrophic issues they have primarily caused and are beginning to accept some responsibility for them.

However, as I also mentioned in earlier writings, climate problems typically stem from two sources: climate change that is being driven globally and a country's lack of preparation to deal with the problems caused by climate change. Additionally, I have suggested actions that the Pakistani government could take to remedy these circumstances.

Today, I present a multifaceted strategy that incorporates governmental action, global accountability, and civic engagement.

It is not just the job of the government to solve problems on a national, state, and local level. Good citizens who care about their children's future and their country's future are also responsible for this. Local strategies to confront and mitigate climate change issues can benefit greatly from the involvement of citizens.

This can be done in a number of ways, including:

examining individual habits of consumption and energy use.

talking about neighborhood climate issues in social circles and on social media.

diagnosing climate-related issues with infographics.

forming organizations and groups in the community to work on environmental projects like cleaning up polluted areas or planting trees.

By providing resources to support citizens' local initiatives and securing the funding required for larger projects, the government can support and expand citizens' actions. Pakistan has not fared particularly well to date in this regard.

Pakistan has barely been able to access global climate funds, according to an analysis of environmental projects it has proposed to various international funding agencies.

“This very limited access to the international financing mechanism is mostly due to limited capacity, lack of technical expertise, and a failure to submit quality proposals that allow the country to benefit from the available climate and other green-financing mechanisms,” says environmental consultant Dr. Muhammad Khurshid.

According to this assessment, Pakistan would benefit from establishing a well-defined planning process and a team of highly trained professionals in order to obtain international funds that are already available and use the Loss and Damage fund when it is available.

As I mentioned near the beginning of this piece, neither the time nor the amount of the fund have been determined yet. Given this, Pakistan and its allies should continue to lead the effort to demand that developed nations establish a loss and damage fund as soon as possible.

Pakistan deserves praise for the initial progress made toward the establishment of a loss and damage fund. The adage "Well begun is half done" applies here. Now is the time to finish the other half.

Pakistan and the other vulnerable nations must ensure that the COP27 commitments are carried out. Conditions that are catastrophic to climate change will not disappear if they do. Additionally, the consequences will affect everyone, with those in developing nations bearing the brunt.