The G77 bloc of developing countries and China are proposing the establishment of a new 'loss and damage' fund to provide finance to countries hit by climate disasters, a draft text of their proposal to the COP27 summit showed.
Loss and damage fund proves sticking point at talksSHARM EL-SHEIKH, Egypt, Nov 15 - The G77 bloc of developing countries and China are proposing the establishment of a newfund to provide finance to countries hit by climate disasters, a draft text of their proposal to the COP27 summit showed.
The subject of loss and damage has for the first time been included on the official COP agenda. But developed and developing nations are split over whether a new mechanism is needed or whether existing financial institutions can deliver the cash needed. The group proposed the new fund would be classed as "designated as an operating entity of the financial mechanism", in a similar way to the Green Climate Fund and the United Nations Global Environmental Facility.a "legal structure that is tied to compensation or liability". Other developed countries also want to move slower than the G77 timeline set out in the document.that failure to agree on such "loss and damage" funding could sour the U.N.
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