The heated debate over how to fund the damage caused by climate change continues, with major economies like China and India facing pressure to contribute to a global loss and damage fund. As the top emitters of greenhouse gases in the world, both countries argue that they have vulnerable communities in need of support from such a fund.
The fund, established in principle during last year’s COP27, aims to provide financial assistance to poorer nations that have been hit by climate-related disasters. However, disagreements persist over who should contribute to the fund and who should receive it.
The United States and other developed countries argue that China and India, as major greenhouse gas emitters, should make significant cuts in emissions and contribute to the fund. They point to the principle of “common but differentiated responsibilities” in the UN Framework Convention on Climate Change, which they argue makes all countries responsible for cutting emissions.
In contrast, China and India argue that the climate crisis was caused by historic emissions from developed countries, and that they are still developing nations according to the 1992 UNFCCC listing. They argue that the burden of contribution should fall more heavily on developed countries.
The debate highlights a broader trust deficit and lack of fulfillment of previous climate finance pledges. As long as the $100bn annual climate finance pledge made by developed countries in 2009 remains unfulfilled, major developing countries will be hesitant to contribute to the loss and damage fund.
The COP28 conference in Dubai has made recommendations for the fund’s operation, urging developed countries to support it while encouraging others to do so voluntarily. While the fund has garnered some support, tensions persist between developed and developing countries over who should pay for it and who should receive it.
The question of who should contribute to and benefit from the loss and damage fund remains unresolved, underscoring the broader challenges of global climate action and the need for collaboration among countries with differing levels of development and emissions.