Disagreements Over Management of New International Climate Fund Risk COP28 Climate Summit Proceedings

Stalled Agreement on Proposed International Climate Fund Risks COP28 Proceedings, As Developing Nations Reject World Bank Control and Developed Countries Hesitate on Funding Commitments

• The COP28 climate summit could be at risk due to disagreements over the management of a proposed new international climate fund. The US and the European Union are pushing for the World Bank to manage the fund, but developing nations are firmly against this due to the World Bank's history as a tool of wealthy powers.
• The fund, agreed upon at COP27, is intended to assist developing countries with the cost of dealing with irreversible damage from climate change. The US, a long-time opponent of the idea, has yet to commit any money towards it.
• Developing nations argue for the fund to operate independently under the UN, citing the World Bank's history of imposing economic policies and neglecting climate needs. Critics urge wealthy nations to abandon the World Bank proposal and establish a stand-alone, rights-based and resourced fund.
• A failure to agree on the fund could risk derailing the upcoming summit, warns Preety Bhandari, senior adviser at the World Resources Institute. The EU wants the fund dedicated to the most vulnerable, while the US suggests focusing on areas such as the impact of slow-onset climate changes.
• The differences in opinions on fund management have resulted in a deadlock, leaving only 30 days until important climate negotiations begin at the UN summit. If an agreement on fund eligibility, who should pay and where it should be housed is not reached, the outcomes of the climate negotiations could be greatly impacted.

3 Articles

POLITICO Reuters Reuters