The representatives of the states of the Global South are frustrated, their appeals at the World Climate Conference (COP27) sound more and more drastic: They are demanding help in dealing with the climate-related disasters that are happening in their countries, but which they did not cause. The industrial nations should pay for any damage that occurs.
The idea is not new; the issue of “damage and losses” has been haunting the world climate conferences for years. Nothing has happened so far, the topic has been postponed. At this year’s COP in Sharm El Sheikh, Egypt, she put it on the agenda for the first time after lengthy negotiations. Nobody is expecting concrete decisions, let alone the subsidy pot, that the countries affected by climate change are demanding these days – after all, the topic is being talked about officially.
But despite all the encouraging speeches of the industrialized nations, they don’t seem to like it that much. They fear claims for damages with every storm, every flood. The word “liability” should therefore not be used in the first place. Now a move by Germany could advance the matter: As part of the German G7 presidency, the Ministry for Development Cooperation drew up a so-called “Global Risk Shield”.
It should be a mixture of financial support, insurance and strengthening of the social systems. The idea behind it: Timely help reduces subsequent damage and costs. NGOs estimate that by the end of the decade, this could amount to between 290 and 580 billion dollars in poor countries.
Therefore, the funds under the Global Shield should be available primarily immediately after a climate catastrophe. Appropriate agreements should be made for this in advance and funds should be kept ready. Because there is money in existing instruments for international climate financing, especially in the Green Climate Fund, into which the industrialized nations have promised to feed 100 billion dollars a year. But that only flows afterwards, sometimes years later, and mostly only as a loan.
Germany would like to present the instrument next week. Then concrete sums and the first partner countries could also be mentioned, because things should start as early as January. From the point of view of the poorer countries, however, the advance is little more than a drop in the bucket. It’s a “smoke candle,” said climate expert Harjeet Singh from the Climate Action Network. In order to really counteract the impending losses, Germany would have to “make significantly more money available”.
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Source: Tagesspiegel
I am an author and journalist with a focus on market news. I have worked for a global news website for the past two years, writing articles on a range of topics relating to the stock market. My work has been published in international publications and I have delivered talks at both academic institutions and business conferences around the world.
