A climate relief fund finalized at the UN’s annual COP29 climate conference is falling billions short of what experts say is needed. This discrepancy prompted appeals from developing nations for wealthier countries to increase their financial commitments.
“All countries that have pledged money must complete their contribution agreements,” COP29 President Mukhtar Babayev said. “And we need more pledges so we can meet the urgent needs of climate change victims.”
The “Loss and Damage” fund, designed to provide financial assistance to nations most vulnerable to the impacts of climate change. The fund was a focal point of discussions at this year’s summit in Azerbaijan.
Analysts estimate that the fund requires at least $100 billion annually to address immediate global needs. They said that figure could rise to $250 billion by 2030 as worldwide climate-related impacts potentially intensify.
However, countries have only pledged $720 million so far, a fraction of the total experts believe is necessary. As a result of this shortfall, several smaller nations are calling on wealthier countries to shoulder a larger share of the responsibility.
“The creation of the Loss and Damage Fund is a victory for developing countries, for multilateralism, and for justice,” UN Secretary-General António Guterres said. “But its initial capitalization of $700 million doesn’t come close to righting the wrong inflicted on the vulnerable.”
Many of those nations are already grappling with rising sea levels, extreme weather and other exacerbated natural disasters.
Disadvantaged nations warn that if this doesn’t happen, their people could become climate refugees. That could create a humanitarian crisis that will have global implications.
“If they do nothing, they will be the worst for it,” Bahamian Prime Minister Phillip Davis said. “When my islands are swallowed up by the sea, then what do my people do? They’ll either become climate refugees or they’ll be doomed to a watery grave.”
Officials are still working on specific guidelines for the allocation of these funds. Those funds are housed at the World Bank.
The United Nations officials are working to establish criteria for which countries will receive aid and what types of damages will be covered.
