World Leaders Approved $100 Billion Fund a Year to Support Developing Countries

Published on: 21 November 2022
by KnowESG

The 27th Conference of Parties (COP 27), which began with the startling reminder that humanity is on a "highway to climate hell," finished on a bright note with the approval of the much-delayed and long-awaited promise of $100 billion per year in climate finance for developing countries.

The fund is meant to help developing countries that haven't done much to cause the climate crisis but are still vulnerable to its negative effects.

For years, and even at COP 27, developing countries have made repeated and robust calls for the establishment of a loss and damage fund.

The annual United Nations Summit on the Environment and Climate Change (COP) brings all of the world's leaders together to discuss and work on climate change.

The conference's 27th edition was slated for November 6-18, 2022, in Sharm El-Sheikh, Egypt. Intense negotiations, on the other hand, went on until the early hours of November 20, when countries at the United Nations Climate Change Conference came to an agreement to pay for "loss and damage" caused by climate-related disasters for the most vulnerable countries.

After missing the November 18 deadline, negotiators were ultimately able to negotiate agreements on several agenda items, including a loss and damage facility - with a pledge to establish a financial support mechanism for the most vulnerable by the next COP in 2023 - and the post-2025 finance goal.

In a video message, the UN Secretary-General António Guterres said, “This COP has taken an important step towards justice. I'm glad that it was decided to set up a loss and damage fund and that it will start to work soon. This will not be enough, but it is a much-needed political signal to rebuild broken trust.”

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Source: Business Today