Developed and developing countries are still far apart on loss and damage ahead of COP28

The document details the friction between developed and developing nations over the design, governance, and funding of the Loss and Damage Fund established at COP27. Key disputes include whether the fund should be a standalone UNFCCC entity or hosted by the World Bank, who should contribute (with the EU suggesting wealthier developing nations like China and Saudi Arabia), and whether the finance should be grants or loans. While a recommendation for a World Bank-hosted Financial Intermediary Fund was proposed, the US abstained due to concerns over legal liability and 'reparations', and the text lacks committed financial targets from developed countries.

• Developed and developing countries disagreed on the fund's structure; developed nations preferred augmenting existing mechanisms like regional insurance pools and humanitarian aid, while developing nations, led by Egypt and the Alliance of Small Island Nation States, demanded a wholly dedicated fund.
• There is a significant divide over the fund's governance and hosting. Developing countries, including the African Group of Negotiators (AGN) and the LDC Group, wanted a standalone UNFCCC financial mechanism to ensure equity. Conversely, the US, France, and Canada supported using existing entities like the Green Climate Fund (GCF), with the US specifically proposing the World Bank as trustee.
• The African Group of Negotiators (AGN) specifically advocates for funding in the form of grants to avoid increasing the debt burden on African nations, whereas the US supports a mix of grants and concessional loans without a specific financial target.
• Disagreements persist regarding eligibility and contributions. Developed countries favour limiting benefits to 'extremely vulnerable' states like LDCs and SIDS, while developing countries argue all should benefit regardless of income. Additionally, the EU suggested that wealthier developing nations, specifically China and Saudi Arabia, should contribute to the fund.
• The United States strongly rejects any terminology linking the fund to 'reparations', as this implies legal liability for historic harms. This position led the US to abstain from voting on the Transitional Committee's final recommendations.
• Kenyan President William Ruto has expressed skepticism that the fund will materialize due to national self-interest, suggesting instead the creation of a new green bank funded by a global carbon tax.
• The Loss and Damage Transitional Committee recommended that the fund operate as a Financial Intermediary Fund (FIF) hosted by the World Bank for an interim period of four years. Developing countries expressed concern over the World Bank's loan-based approach and a potential 17% hosting fee.

APA

Olivia (2023). Developed and developing countries are still far apart on loss and damage ahead of COP28. Africa Policy Research Institute. https://afripoli.org/developed-and-developing-countries-are-still-far-apart-on-loss-and-damage-ahead-of-cop28

Chicago

Olivia. Developed and developing countries are still far apart on loss and damage ahead of COP28. Africa Policy Research Institute, 2023. https://afripoli.org/developed-and-developing-countries-are-still-far-apart-on-loss-and-damage-ahead-of-cop28.

Wikipedia

{{cite report |last1=Olivia |title=Developed and developing countries are still far apart on loss and damage ahead of COP28 |publisher=Africa Policy Research Institute |date=1 December 2023 |url=https://afripoli.org/developed-and-developing-countries-are-still-far-apart-on-loss-and-damage-ahead-of-cop28 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{olivia2023developed, author = {Olivia}, title = {{Developed and developing countries are still far apart on loss and damage ahead of COP28}}, institution = {Africa Policy Research Institute}, year = {2023}, month = dec, url = {https://afripoli.org/developed-and-developing-countries-are-still-far-apart-on-loss-and-damage-ahead-of-cop28}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }