Nations agree to launch climate aid fund for vulnerable countries on first day of COP28

Delegates from nearly 200 nations have pledged to create a fund to help vulnerable countries deal with the effects of climate change, with richer nations promising at least $260 million to begin the program, marking a significant milestone on the first day of global climate negotiations in Dubai.

During the largest climate conference, otherwise known as COP28, delegates adopted a framework for the World Bank -hosted fund after months of disagreement and negotiations. United States climate envoy John Kerry said the Biden administration would work with Congress to provide $17.5 million.

The United Arab Emirates — the nation hosting the conference this year — said it would add $100 million to the fund, alongside Germany’s contribution of the same amount. The United Kingdom promised £60 million ($76 million), and Japan added $10 million. These contributions would clear the $200 million minimum threshold needed to launch operations, setting the foundation to begin disbursing money early next year.

The details had been agreed to earlier this month at a pre-conference session, where several countries objected to the World Bank hosting the fund because of its strong U.S. ties. All parties, however, agreed that the World Bank’s oversight of the money would be temporary.

It’s taken a year to nail down the contours of the loss and damage fund — a relatively short time in the world of international diplomacy. Countries had agreed to create the fund at the end of the last COP in Egypt .

Still, major questions remain over the fund — centering on the project's source and scale of funding. Developing nations argue that countries that industrialized first should make the largest contribution since they’re arguably responsible for much of the greenhouse gas emissions in the atmosphere. Still, contributions to the fund remain voluntary, with the agreed-upon framework merely urging developed nations “to take the lead” to provide the seed money.