Faraz Khan, CEO & Partner, SpectrEco on LinkedIn

As of March 8, 2023, several nations have committed their support to the Loss and Damage Fund (LDF), a crucial initiative aimed at mitigating the impacts of climate change. The commitments made by these countries are as follows:

• Germany: €100 million

• France: €50 million

• United Kingdom: £50 million

• Netherlands: €30 million

• Switzerland: CHF 20 million

• Norway: NOK 100 million

• Sweden: SEK 50 million

• Finland: €20 million

• Denmark: DKK 100 million

 Collectively, these pledges amount to €320 million. The Global Environment Facility(#GEF), responsible for administering the fund, estimates a need for a base funding of $100 million per annum to initiate grant allocations. These are preliminary commitments. The actual amount to be contributed to the fund will only be known once the GEF finalizes agreements with these nations. 

 However, the #UnitedStates‘ hesitance to contribute to the fund could lead to inadequate funding and inaction, casting a discouraging signal to taxpayers in other nations. This reluctance seems to stem from a complex mix of political mandates, taxpayer concerns, and the evolving narrative of #climate reparations, which needs understanding within its historical context.

Post the Second World War, Western nations, including the United States, ushered in an era of unprecedented industrial growth. Driven by ambition and the spirit of innovation, these countries sought to stimulate their economies and improve their citizens’ living standards. As a part of this pursuit, they established supply chains in developing nations to leverage the availability of inexpensive #labour, land, and raw materials. While these efforts led to #economic prosperity in the Western nations, they inadvertently overlooked the environmental repercussions, thereby contributing to the current global #environmental crisis. Today, as we grapple with #climatechange, these historical factors play a critical role in shaping the discussions around climate reparations and responsibilities.

 Despite being at the forefront of the industrial revolution and being responsible for a significant proportion of #greenhousegasemissions , these nations have not been the only contributors to the climate crisis. Statistics show that 23 rich, developed countries, accounting for just 12 per cent of the global population today, are responsible for 50 per cent of the planet-warming greenhouse gases released from fossil fuels and industry over the past 170 years. These include the United States, Canada, Japan, and much of Western Europe.

 Meanwhile, more than 150 countries are responsible for the other half. Among the world’s biggest developing economies, China, with 18 per cent of the world’s population, is responsible for nearly 14 per cent of all the greenhouse gases released from fossil fuels and industry since 1850. Despite this, it is now the world’s largest emitter, accounting for roughly 31 per cent of humanity’s carbon dioxide from energy and industry this year. This disparity in emissions and their impacts has led to an increased emphasis on the concept of ‘loss and damage.

The fallout from the historical progression of #industrialization is vast and interconnected, leading to food security challenges, livelihood losses, and forced migrations, all a result of climate-induced disasters and a steadily deteriorating planetary climate. This situation lends itself to the narrative of reparation, which needs an urgent overhaul.

 To truly make progress, we need to shift this narrative. Climate change will not discriminate – disasters like floods in Pakistan, wildfires in Canada, earthquakes in #Turkey, or droughts in #Europe will impact the globe, the United States included.

 While climate change can cause a variety of adverse effects, one of the most pressing is its impact on public health. The World Health Organization estimates that climate change could lead to approximately 250,000 additional deaths per year between 2030 and 2050. Financial contributions to the fund can be seen as an investment in global health security, supporting those nations at the greatest risk.

 Furthermore, there are numerous economic incentives for mitigating climate change. A study by the Global Commission on the Economy and Climate suggests that decisive climate action could yield at least $26 trillion in economic benefits through 2030. Thus, nations investing in the fund aren’t just curbing environmental damage but are also promoting economic prosperity.

Climate change has real-world implications that are already manifesting. Take, for example, the #Maldives, a low-lying island nation currently grappling with rising sea levels. By emphasizing these scenarios, we underscore the urgency of proactive climate action.

 The principle of Common But Differentiated Responsibilities (#CBDR), established in the United Nations Framework Convention on Climate Change (UNFCCC UN), underlines the fact that developed countries should lead in climate action due to their historical contribution to greenhouse gas emissions.

 Public opinion echoes this call to action. Amid this multitude of global adversities, climate change has emerged as a particularly prominent issue of concern among citizens of advanced economies, as revealed by a recent survey from the Pew Research Center. This survey indicates that, on average, 75% of respondents across 19 countries spanning North America, Europe, and the Asia-Pacific region identify global climate change as a significant threat. The risks of inaction are high, with potential consequences ranging from increased disease transmission and extreme weather events to social and political instability due to resource scarcity.

 Therefore, overcoming the blame game and accelerating climate actions and funding is essential. We must adopt a forward-looking narrative that focuses on the future instead of dwelling on past mistakes.