[News Terms] 'COP28' Establishing the 'Climate Loss and Damage Fund'

Financial Compensation for Developing Countries Suffering from Climate Change
UAE and Germany Secure Over $420 Million, Including $100 Million Donation

Developing countries, which bear relatively less responsibility for the global climate change problem, are now being given a path to receive financial compensation for the greater damages they suffer. This was announced at the '28th United Nations Framework Convention on Climate Change (UNFCCC) Conference of the Parties (COP28)' held in Dubai, United Arab Emirates (UAE), starting from the 30th of last month.

The UNFCCC Conference of the Parties (COP) is a meeting where 198 parties, including 197 member countries and the European Union (EU), gather once a year to discuss climate change issues caused by greenhouse gases. It began with the first meeting held in Berlin, Germany, in 1995 to establish concrete implementation measures for the climate change convention signed at the 1992 United Nations Conference on Environment and Development in Rio de Janeiro, Brazil. Except for 2020, when it was not held due to COVID-19, it has been held annually. It is the only global official international diplomatic conference where the world comes together to pledge significant reductions in greenhouse gas emissions.

On the 1st (local time), representatives from various countries are taking a commemorative photo at the '28th United Nations Framework Convention on Climate Change (UNFCCC) Conference of the Parties (COP28)' held in Dubai, United Arab Emirates.
[Image source=Reuters Yonhap News]

The climate change convention mainly includes ▲preparing national reports on each country's greenhouse gas emissions and absorption status and policy implementation ▲establishing and implementing domestic policies to reduce greenhouse gas emissions ▲recommendations for reducing greenhouse gas emissions. To implement this, the 1997 meeting adopted the 'Kyoto Protocol,' which resolved to impose non-tariff barriers on countries that do not reduce emissions of six greenhouse gases including carbon dioxide, and in 2015, the 'Paris Agreement' was adopted to limit the global temperature rise to below 1.5 degrees Celsius compared to pre-industrial levels.

The role of COP is crucial because the speed and extent of climate change are becoming increasingly severe. This year, heatwaves, heavy rains, and super typhoons struck various parts of the globe. The victims are mainly people in developing countries. The World Health Organization (WHO) stated, "The 249 million cases of malaria recorded last year were significantly influenced by climate change."

Accordingly, at this COP28, the 'Climate Loss and Damage Fund,' which provides financial compensation from developed countries that industrialized earlier to developing countries suffering from climate disasters, was officially launched. The recognition of developed countries' responsibility for climate disasters and support for developing countries has been discussed since the 1990s, but progress had stalled due to the lukewarm attitude of developed countries.

The total funds raised so far amount to 450 million dollars (approximately 587.5 billion KRW). The EU pledged 145 million dollars, the UAE and Germany each committed 100 million dollars, and the United States (17.5 million dollars), the United Kingdom (7.58 million dollars), and Japan (10 million dollars) also promised contributions. Although the South Korean government has not yet started related discussions, as the world's 9th largest carbon emitter, it is highly likely to face pressure to participate in the fund.