The COP28 climate summit in Dubai, United Arab Emirates, started off on the right foot. The Loss and Damage Fund, intended for the most vulnerable countries, is starting to take shape thanks to the $100 million that the Emirates and Germans have contributed to its implementation. The World Bank will temporarily withhold money from this fund.

The fund was first agreed upon during COP27, held in Sharm el-Sheikh, Egypt, and is operational from today following an agreement reached by the countries.

COP28 President Sultan Al Jaber highlighted “the speed with which the world came together to operationalize this fund within a year of the Parties [los países que participan en la cumbre] They agreed that this is unprecedented in Sharm el-Sheikh.”

The United Arab Emirates and Germany have each pledged $100 million to the new fund, while the United States, Britain and Japan have also announced pledges to contribute.

Why is this fund needed?

Emissions caused by global warming have been linked to human economic activity since the Industrial Revolution. This means that the countries with the most economic development have historically been the most polluting. It so happens that the least developed countries are suffering the most from climate change and are being asked to give up their dependence on oil and gas when they have many economic needs. “Loss and damage” refers to the compensation that should be received by developing countries that are suffering the most from the consequences of this crisis for which they are not responsible.