Hello!
Day one at the United Nations 28th Conference of the Parties ended successfully in the United Arab Emirates, as COP28 President Dr. Sultan Al Jaber pounded his gavel on a historic agreement on a previously contentious issue – climate disaster funds.
It’s official, climate disaster funds have been agreed upon for developing nations that are particularly vulnerable to the adverse effects of climate change, otherwise known in the negotiations as “loss and damage fund”.
Delegates opened the door for governments to announce contributions. UAE, COP28 host, offered $100 million, Britain pledged at least $51 million, $17.5 million were added from the United States, and $10 million from Japan. Later, the European Union pledged $245.4 million, which included $100 million pledged by Germany.
But some groups were cautious about celebrating the fund’s early adoption, noting there were still unresolved issues including how the fund would be financed in the future.
There is also a myriad of financial protection options, including pre-arranged finance (PAF) like catastrophe bonds, parametric insurance and other loan structures such as risk pools that guarantee a set, speedier payout in the event of disaster.
However, accessing them is hard for many countries amid punishing debt burdens, heightened by recent surge in global interest rates.
Here is a rundown of what to watch at COP28 on Friday.
