Weather Shifts In Climate Talks

Two changes: accepting that biggest polluters will pay poor nations pressure on China, India to contribute

The 27th Conference of Parties (COP27) to the UN Framework Convention on Climate Change (UNFCCC), which wrapped up in the early hours of Sunday at the Egyptian resort town of Sharm El-Sheikh, set things in motion that will have far-reaching implications for the international climate negotiations.

COP27 kicked off with the demand by the developing countries, especially least developed countries (LDCs) and small island nations, to set up a 'Loss and Damage' fund to compensate them for climate disasters. These countries, which have contributed the least to global warming, are now suffering annual losses in billions of dollars. For instance, the cost of the recent floods in Pakistan is estimated to be over $46 billion-13.25% of the country's GDP.

The loss and damage negotiation was acrimonious, to say the least, with the US entirely against any deal that would expose them to unlimited liability for their historic contribution to greenhouse gas (GHG) emissions. The negotiations also got into the question of who should pay, with small island states demanding that India and China should also contribute to the fund as they are now big GHG emitters.

Structure of compensation fund

In the wee hours of Sunday, countries agreed to set up a new funding window to pay for loss and damage, but with many caveats attached to this fund.

The fund will only support countries most vulnerable to climate change.

It might not include India.

Funding will come from both developed countries and a "mosaic" of sources, including the private sector and philanthropies.