Nearly 200 countries on Thursday approved the "loss and damage" fund on the first day of the UN's two-week annual climate summit — known as COP28 — in Dubai.
More than $400M was immediately committed to the fund, with the EU, the UK, the US, and host UAE pledging $245.39M, $51M, $17.5M, and $100M, respectively.
The loss and damage fund is a significant milestone in combating the climate crisis. It shows that the entire international community is ready to act with ambition on a global threat. Even though industrialized nations aren't obliged to compensate developing countries least prepared to deal with climate-linked weather disasters, they have come together to ensure everyone is equipped with adequate funds and technology to help with what's coming.
It's too early to celebrate the fund's approval as certain issues still need to be solved, including how the fund will be financed in the future. Moreover, the fund's long-term sustainability and COP28's climate mitigation plans remain questionable if fossil fuel companies are not part of the solution to climate challenges or world leaders refrain from completely phasing out fossil fuels. Lastly, the fund recognizes the world has failed to prevent climate change from happening.
There's a 50% chance that the average global temperature in 2100 will be 2.47°C higher than the average global temperature in 1880, according to the Metaculus prediction community.