18 COP 27
@ green | November-December , 2022
Breakthrough agreement
Vulnerable countries to be entitled to new ‘ loss and damage ’ Fund
THE United Nations Climate Change Conference COP27 closed with a breakthrough agreement to provide “ loss and damage ” funding for vulnerable countries hit hard by climate disasters . “ This outcome moves us forward ,” said Simon Stiell , UN Climate Change Executive Secretary . “ We have determined a way forward on a decades-long conversation on funding for loss and damage – deliberating over how we address the impacts on communities whose lives and livelihoods have been ruined by the very worst impacts of climate change .”
Set against a difficult geopolitical backdrop , COP27 resulted in countries delivering a package of decisions that reaffirmed their commitment to limit global temperature rise to 1.5 degrees Celsius above pre-industrial levels .
The package also strengthened action by countries to cut greenhouse gas emissions and adapt to the inevitable impacts of climate change , as well as boosting the support of finance , technology and capacity building needed by developing countries .
Creating a specific fund for loss and damage marked an important point of progress , with the issue added to the official agenda and adopted for the first time at COP27 .
Governments took the ground-breaking decision to establish new funding arrangements and a dedicated fund to assist developing countries in responding to loss and damage . Governments also agreed to establish a ‘ transitional committee to make recommendations on how to operationalise both the new funding arrangements and the fund at COP28 next year . The transitional committee ’ s first meeting is expected to occur before the end of March 2023 .
Parties also agreed on the institutional arrangements to operationalise the Santiago Network for Loss and Damage , to catalyse technical assistance to developing countries that are particularly vulnerable to the adverse effects of climate change .
COP27 saw significant progress on adaptation , with governments agreeing on the way to move forward on the Global Goal on Adaptation , which will conclude at COP28 and inform the first Global Stocktake , improving resilience amongst the most vulnerable .
Adaptation Fund at COP27
New pledges , totaling more than US $ 230 million , were made to the Adaptation Fund at COP27 . These pledges will help many more vulnerable communities adapt to climate change through concrete adaptation solutions . COP27 President Sameh Shoukry announced the Sharm el-Sheikh Adaptation Agenda , enhancing resilience for people living in the most climatevulnerable communities by 2030 .
UN Climate Change ’ s Standing Committee on Finance was requested to prepare a report on doubling adaptation finance for consideration at COP28 next year .
The cover decision , known as the Sharm el-Sheikh Implementation Plan , highlights that a global transformation to a low-carbon economy is expected to require investments of at least US $ 4-6 trillion a year . Delivering such funding will require a swift and comprehensive transformation of the financial system and its structures and processes , engaging governments , central banks , commercial banks , institutional investors and other financial actors .
Serious concern was expressed that the goal of developed country Parties to mobilise jointly US $ 100 billion per year by 2020 has not yet been met , with developed countries urged to meet the goal , and multilateral development banks and international financial institutions called on to mobilise climate finance .
At COP27 , deliberations continued setting a ‘ new collective quantified goal on climate finance ’ in 2024 , considering developing countries ’ needs and priorities .
“ In this text , we have been given reassurances that there is no room for backsliding ,” said Stiell . “ It gives the key political signals that indicate the phasedown of all fossil fuels is happening .”
The World Leaders Summit , held over two days during the first week of the conference , convened six high-level roundtable discussions . The discussions highlighted solutions – on themes including food security , vulnerable communities and just transition – to chart a path to overcome climate challenges and how to provide the finance , resources and tools to effectively deliver climate action at scale .