Global Leaders Come To Agreement On Compensation For Climate Change

Last weekend, world leaders proposed the operations for a fund to compensate developing nations for damages suffered due to climate change, The Hill reported.

During last year’s global climate summit, leaders set up the fund despite resistance from some countries. However, many details of the agreement remained unresolved.

Last weekend, a committee made up of several countries offered a proposal for how the fund should be set up. For the proposal to take effect, it will need to be adopted at the COP28 climate summit later this month.

The committee proposed that the World Bank host the fund in the interim and calls on developed nations to voluntarily support the fund. The proposal calls for a board consisting of representatives from both developed and developing nations that will govern the fund. Decisions on using the fund must be approved by a four-fifths majority of the board.

A State Department official said the department was pleased that the committee reached an agreement on some aspects of the fund but said it was disappointing that the text of the proposal failed to sufficiently stress that contributions would be voluntary.

There was criticism over the proposal by some groups that believed the committee’s framework was unfair to developing nations.

The Union of Concerned Scientists’ Rachel Cleetus, who is the lead economist for the group’s Climate and Energy Program, said in a statement last week that the proposal will continue to allow wealthy nations like the United States to “evade their primary responsibility to contribute to a climate Loss and Damage fund.”

Cleetus claimed that wealthy nations forced developing nations to accept “a lopsided compromise” by placing the fund at the World Bank, which she accused of having a “donor-driven lending model” and “undemocratic governance structure” that raise “serious concerns” over whether it should host the fund.