COP28 Climate Funding Is Good News, But Sustained Efforts Are Needed

Protecting individuals and communities from the severe consequences of climate change is expensive. As a result, finance was one of the most critical issues on the agenda at the United Nations COP28 climate summit.

In 2009, parties at the Copenhagen climate summit agreed that developed countries must provide the developing world with $100 billion annually to cut greenhouse gas emissions and manage the impacts of climate change by 2020. It wasn’t until 2023 that wealthy nations met their pledge of providing $100 billion to those in need.

Last year, at COP27 in Sharm El Sheikh, a coastal city in southern Egypt, participants agreed to establish the first fund dedicated to this purpose. The wealthiest countries were “urged” to contribute, while middle-income countries with emerging economies were “encouraged” to do so. Now, the focus should shift to locking in and increasing the fund’s resources to compensate for losses and damages.

There was progress in securing these contributions at COP28. Germany and the United Arab Emirates each contributed $100 million, the European Union added $145 million, and the United Kingdom contributed $75 million. However, the United States pledged only $17.5 million. Since previous pledges haven’t always matched what was promised, even $17 million is not guaranteed.

Even with existing contributions, the fund will likely fall short of covering the exorbitant costs expected to be borne by developing countries due to climate change. According to a report by the U.S. Global Leadership Council, extreme weather already causes $520 billion in economic losses annually, disproportionately affecting the developing world. These losses are set to grow as natural disasters become more frequent and severe, pushing an estimated 26 million people annually into poverty – a figure expected to rise.

We’ve known for decades that natural disasters are getting worse, but we haven’t done enough about it. As early as 2005, American researchers found that the frequency of Category 4 and 5 hurricanes had doubled in the previous 30 years. The findings were publicized in a publication by the U.S. National Science Foundation. Despite substantial research by American scientists, the U.S. government has been reluctant to take action.

Former Republican presidents, such as George W. Bush and Donald Trump, have downplayed and sometimes even denied the severity of climate change. In contrast, Democratic presidents, like Barack Obama and Joe Biden, speak seriously about the issue, but their actions pale in comparison to those of many foreign leaders.

Biden skipped COP28 this year, stating he would continue to “tackle the climate crisis” from Washington, D.C.

However, the Biden administration has been attempting to limit the scope of the loss and damage fund. Administration officials have argued that the fund should be limited to only those countries designated as “most vulnerable.”

The U.S., with the highest carbon emissions per capita, contributed less to the fund than most other developed countries.

That was not the only controversy at COP28. The actions by fossil fuel companies to try to greenwash their responsibility for climate change were also scrutinized.

Despite these points of contention, progress is being made in slowing the rate of climate change. Ten years ago, it was estimated that the average global temperature would rise by 4 degrees Celsius by the end of the 21st century. Now, the temperature is only expected to rise by 2.5 degrees because of the actions almost every country has taken. It’s still above the 2-degree limit the world is supposed to target, but sustained efforts could yield further progress.