At COP27 in Egypt, talks wrangle over whether wealthy polluters should help vulnerable countries pay for costly extreme weather events fueled by climate change, a handful of small, European governments has stepped up to offer “loss and damage” funds.
The modest tally so far is nowhere near the hundreds of billions of dollars that experts expect will be needed each year by 2030 to help communities fix and rebuild when disasters hit. However, the moves have broken decades of refusal by developed nations to offer such reparations or to discuss their historical responsibility for climate change for fear of liabilities.
Below are the pledges made so far during the UN climate summit:
Scotland
Scotland was the first to offer loss and damage funding at last year’s UN climate summit in November, making a symbolic £2 million pledge as a way to encourage other countries to do the same.
While vulnerable countries say one-off commitments are no substitute for a fund to give ongoing support, some commended Scotland’s leadership in acknowledging the issue.
At COP27, Scotland’s First Minister Nicola Sturgeon pledged on Tuesday an extra £5 million, bringing the total to £7 million.
Denmark
In September, Denmark has committed 100 million Danish crowns, with a focus on fragile areas including the Sahel region in northwestern Africa.
Germany
German Chancellor Olaf Scholz said on Monday at COP27 that Germany would provide €170 million for a “Global Shield” initiative launched by G7 rich countries and finance ministers from the Climate Vulnerable Forum group of 58 developing countries on the frontline of climate impacts. The initiative aims to strengthen insurance and disaster protection finance, Scholz added.
The German chancellor did not specify what the funding would cover or over which period it would be provided. Countries are expected to formally launch the “Global Shield” later in the COP27 summit.
Austria
Austria is set to provide at least €50 million to tackle loss and damage over the next four years, its government announced on Tuesday.
The funds could support the “Santiago Network”, a UN scheme providing technical support to countries faced with damages from climate change-fuelled natural disasters, and a programme providing early warning systems to nations prone to extreme weather.
Ireland
Irish Prime Minister Micheal Martin announced at the COP27 that country will commit €10 million to the “Global Shield” initiative for 2023.
Belgium
Belgium has on Monday pledged €2.5 million as part of a €25 million package of climate-related support for Mozambique from 2023 to 2028. Its government said the funding would focus on preventing and limiting loss and damage, for example by mapping areas vulnerable to storm surges and by launching early warning systems.
Some vulnerable countries said that type of funding does not count as “loss and damage” money, which they say should compensate nations for unavoidable costs from disasters.
Developed countries already provide funds to help countries adapt to climate change by preparing for worse weather impacts. However, this funding has fallen short of promised amounts. In 2020, rich countries provided climate finance worth $83.3 billion, a third of which went to adaptation.
