COP28, commencing on Thursday, is scheduled to conclude on December 12, 2023. On the inaugural day of COP28, member nations reached an agreement to operationalize a Loss and Damage (L&D) fund designed to compensate countries grappling with climate change.
The L&D fund, located at the World Bank but overseen by an independent secretariat, has garnered commitments exceeding $450 million from various countries. Although billions are still required to fulfill its purpose, this marks a positive step forward.
The L&D fund’s inception traces back to COP-27 in Sharm El-Sheikh, Egypt, last year. It took five separate meetings, facilitated by ’transitional committees,’ to achieve unanimous agreement among countries. Delegates hailed the first-day launch of the fund as a positive start, fostering good momentum for ensuing discussions.
Financial commitments, as of Thursday, include $100 million from the United Arab Emirates (the host country), $100 million from Germany, $17 million from the United States, approximately $50.6 million from the United Kingdom, and $10 million from Japan. The European Union also pledged $145 million, supplementing Germany’s contribution.
The decision to kickstart the fund on the inaugural day of COP28, after years of contention, serves as a noteworthy example of the summit’s efficacy in addressing urgent global challenges.
On the sidelines of COP28, President Kagame participated in the Sustainable Markets Initiative (SMI) reception, co-hosted by King Charles III and UAE President Sheikh Mohammed bin Zayed Al Nahyan.
Launched by King Charles III in 2020 at the World Economic Forum’s Annual Meeting in Davos, the Sustainable Markets Initiative serves as the premier global private sector organization for sustainable transition. Its ability to convene leading organizations from industry, financial services, and governments is instrumental in driving innovation and expediting progress toward a just, sustainable, and prosperous future.
The Sustainable Markets Initiative’s mandate, known as the Terra Carta, aims to coordinate a global effort enabling the private sector to accelerate the achievement of global climate, biodiversity, and Sustainable Development Goal targets. Introduced in 2021 at the One Planet Summit, the Terra Carta outlines guiding principles and ambitious actions through 2030, placing Nature, People, and Planet at the core of global value creation.