Loss and Damage
The poorer countries, as they are unable to take timely corrective measures to mitigate these changes caused by others in the past, face the negative effects of Climate Change first. Thus, the new concept of "Loss and Damages" has started taking root among them.
Under this new concept, they are demanding adequate financial help to take corrective measures to mitigate these changes, caused by the richer, industrialized nations, in the past. Now they are redefining it as a matter of liability and compensation, rather than aid after a particular natural disaster.
Loss and damage are also referred to as the "third pillar" of climate change politics, after mitigation (tackling the root cause of the problem by reducing emissions) and adaptation (preparing for current and future impacts).
However, developed countries have pushed back against this since the 1990s when the text of the UN Framework Convention on Climate Change was being drawn up, terming it completely implausible.
Meanwhile, a group of island countries had proposed that an international insurance fund be created to compensate low-lying countries for the damage caused by rising sea levels.
The Economist magazine reports that in 2015, at the talks, which culminated in the adoption of the Paris Agreement, developing countries again sought a strong clause on loss and damage financing. But they ended up with only a vague reference to the issue. And concrete action was left for future discussions, thus the Egypt Summit offers a chance again to hammer out a concrete policy and action plan on the issue.
Positive actions
Denmark has recently pledged just over $13m to develop countries that have suffered damage from climate change and more developed countries may follow suit.
Scotland's First Minister, Nicola Sturgeon, at COP26 in Glasgow last November, promised 2 million pounds ($2.7 million) as a one-off loss and damage payment, apparently hoping that other rich countries might follow suit, however, they did not.
But the pressure for them to do so is increasing. Last month ministers from an alliance known as the 'Least Developed Countries Alliance' (LDCA) having 46 members, called the creation of a financial mechanism for loss and damage a "fundamental priority" for COP27. At the UNGA last month, Secretary-General Antonio Guterres suggested that windfall taxes on fossil fuel companies might provide the funding for one.
But is easier said than done and may not happen at all. There is an utter lack of enthusiasm among developed countries for such a payout. Some developing countries are tentatively seeking redress through international law.
On September 22, the UN Human Rights Committee ordered the Australian government to pay compensation to indigenous people living on the islands of the Torres Strait, which are being eroded by rising seas. Perhaps it is for the first time that such payment has been ordered. The Australian government seemed sympathetic to the islanders' plight. But whether it will translate into hard cash, let alone a costly acceptance of liability - remains to be seen. Hence, a global framework for loss and damage still looks like a distant prospect.
