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At the Sharm el Sheikh conference, one of the most complex issues to be discussed is that of “damage and loss”, an economic compensation from the richest countries to the poorest, to help them face the effects of climate change.
The COP27 Climate Summit demanded that the private sector help the most vulnerable countries and those that are suffering the most from the effects of climate change. The special representative for the Presidency of the COP27, Wael Aboulmagd, affirmed that the talks on the point of “loss and damage have already begun” and hopes that there will be a “significant result” at the end of the summit, although he warned that this will not be active until 2024.
It is the first time that an aspect as thorny as the economic compensation that comes with accepting responsibilities and disbursing large sums of money has been included in the climate event’s agenda.
Richer countries are still reluctant to accept responsibility for historic emissions and have so far failed to provide the level of support that developing nations, often hardest hit by climate change ravages like extreme droughts or floods, need. .
Jacob Werksman, senior adviser to the European Commission’s climate directorate, defended the European Union’s support for financing loss and damage because they recognize that they have “a disproportionate historical responsibility for emissions” and that the Old Continent has become ” rich, in part thanks to the benefits of building an economy dependent on fossil fuels.
2.4 trillion by 2023
The event management presented a report calling on the private sector to invest $2.4 trillion a year by 2030 to benefit emerging and developing countries to reduce emissions, build resilience and address losses and damage caused by the effects of climate change.
Emerging and developing countries are proposed to work with investors and multilateral institutions to unlock $1 trillion a year in external finance for mitigation, adaptation, and loss and damage by 2030.
But, in addition, 1.4 billion per year will be needed by 2030 for energy transition, according to the expert from the London School of Economics and one of the authors of the document, Nicholas Stern.
“Total annual investment needs for emerging market and developing countries other than China are estimated to be $1 trillion in 2025 and $2.4 trillion by 2030,” he said.
The report details that subsidies and low-interest loans from the governments of developed countries should double from 30,000 to 60,000 million dollars annually by 2025.
The report was published by the London School of Economics and the Brookings Institution. It was prepared by a group of independent experts, led by Vera Songwe and Nicholas Stern, at the request of the Egyptian presidency of COP27 and the British presidency of COP26.
with EFE
