Will the rich provide compensation to developing countries affected by climate change?
The slogan of this COP 27 has been decided as ‘Participation all in the implementation,’ with the highest importance on the issue of compensation to countries in danger due to climate change.
At last year’s COP26 conference in Glasgow, rich countries blocked the way to negotiate compensation for developing countries due to climate change.
In this direction, developing countries faced many climate change disasters last few years. Among these, the severe floods in Pakistan and severe drought in East Africa are notable and frightening events.
Bangladesh’s Sylhet has also suffered two floods this year and the latest Cyclone Strang in coastal areas, killing more than 30 people, destroying many houses, and causing extensive crop damage.
For these reasons, issues related to the creation of funds to compensate disaster-prone countries due to the effects of climate change will be very important at the discussion table at this year’s COP 27 conference.
Disaster-prone countries demand that developed countries like the United States, the United Kingdom, and the European Union should allocate their funds for ‘climate change-related damages. They want opportunities to build infrastructure for renewable and environmentally friendly energy.
They are now talking about who will give money to these affected countries. How much money has been spent on the climate sector for so long? How is that money spent? Let us take a look at them.
Climate funds spend on three major sectors. The first is to reduce the use of fossil fuels and stop other polluting activities in developing countries.
Many countries still have coal-fired power plants. These countries now need financial support to build infrastructure for solar power.
The second is adaptation. This means helping developing countries prepare to face the worst impacts of climate change.
For example, the construction of strong flood defenses, relocation of the vulnerable population, development of cyclone and flood-resistant housing, etc.
The third is the most controversial sector—loss and damage. The money in this sector uses to help countries affected by climate change recover.
Developing countries now demand it guaranteed compensation from developed countries. Because historically developed countries are responsible for climate change.
In 2009, rich nations in the Paris Agreement pledged $100 billion a year to develop countries for climate change action by the end of 2020. By the end of 2020, only $83 billion was available for this. It expects that this target will achieve in 2023.
According to the Organization for Economic Co-operation and Development (OECD), 82 percent of this money came from the public sector. However, a UN analysis found that the private sector could provide 70 percent of the investment needed to meet climate commitments.
In that vein, an alliance called the ‘Glasgow Financial Alliance’ has formed last year. This alliance of more than 550 private institutions has pledged to create a fund of $130 trillion.
The question arises, how much assistance do develop countries receive from these funds? In this regard, the developing countries say that the target has been achieved very little compared to the commitment.
At the COP-26 conference, the Group of 77 of developing countries, including China, called on rich countries to create a fund of at least 1.3 trillion dollars by 2030. Rich countries, on the other hand, argued that this money should spend equally on reducing carbon emissions and tackling climate change.
Recent figures from the Organization for Economic Co-operation and Development show that only 34 percent of climate finance helps developing countries adapt to climate change.
In addition, 71 percent of the money has still given as loans to countries instead of direct grants. This may increase the debt burden of developing countries. Oxfam‘s head of international climate policy, NAFCO, called it a serious injustice.
Sameh Shukri, President of the COP-27 conference, said in the opening speech, “Putting the issue of compensation to countries in danger due to climate change on the agenda means showing solidarity with the countries affected by climate change in the world.”
However, UK Prime Minister Rishi Sunak and French President Emmanuel Macron are urging the conference to be taken seriously this time.
They opined that the issue of climate change has become more important than the issue of energy security because of the war in Ukraine because climate and energy security go hand in hand.
