Is Pakistan prepared for COP27’s Loss and Damage Fund?

Last year, immediately after the devastating floods, the damages to a major part of the country were recognised by the world community.

The Secretary-General of the United Nations, Antonio Guterres, himself visited and witnessed the large-scale damages. Later, at COP27 in Sharm el-Sheikh, Egypt, he said, “This COP had taken a step towards justice in establishing the much-needed ‘Loss and Damage Fund’ that I warmly welcome.”

In his closing remarks, Simon Stiell, the Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC), announced the Executive Action Plan for early warnings for all initiatives, calling for an initial targeted investment of $3.1 billion (equivalent to just 50 cents per person per year) during the period between 2023 and 2027.

The International Loss and Damage Executive Committee was established at COP19 held in Warsaw, Poland, in November 2013, to devise the mechanism for loss and damage. This was reiterated by developing countries at COP27.

With consensus to establish the Loss and Damage Fund, as demanded by the G77 and led by Pakistan, COP27 was very successful. To secure benefits from the fund, Pakistan would have to build a strong and dedicated team of eminent, trained professionals. The team must understand the required eligibility criteria, procedure, assess the required resources, and technology with a focus on benefitting from the proposed climate fund.

COP27 was held in the aftermath of Pakistan’s disastrous summer floods, leading to the announcement that Pakistan’s Prime Minister Shehbaz Sharif will serve as vice-chair of the summit, in addition to being the chair of the strong voice of G-77.

At COP27, negotiators, led by Pakistan as the chair of G77, produced an accord to set up a fund for loss and damage, a remarkable feat given its controversial nature.

Pakistan, with an insignificant contribution to global warming, is already witnessing a severe impact of climate change in the form of unprecedented rainfall and flooding.

According to the World Bank, the 2022 disaster in Pakistan caused total financial losses amounting to $40 billion, affected 33 million people across the country, and left 1,714 people dead. In addition, the reconstruction and rehabilitation costs may run into billions.

The establishment of the Loss and Damage Fund was the highlight of the United Nations Climate Conference (COP 27) for many. It culminated decades of pressure from climate-vulnerable developing countries. The fund aims to provide financial assistance to nations most vulnerable and impacted by the effects of climate change.

Almost 10 months have passed since the adoption of the Loss and Damages Fund at COP27. Pakistan is yet to prepare any institutional mechanism, capacity and lead organisation to initiate preparatory work for capitalising on the Loss and Damage Fund.

The Ministry of Climate Change and Environmental Coordination, as the focal ministry, should have taken the lead in establishing the required institutional setup and lead professionals. By now, they should have initiated the necessary process.

However, it seems they are waiting for a miracle that the UN will transfer the fund to a dedicated account for loss and damages. This will never happen. Pakistan is highly eligible to access the loss and damage resources provided they follow the required procedure.

COP28 has already been announced to be hosted by the United Arab Emirates in late November 2023. Pakistan has to present progress on the Loss and Damage Fund, along with other decisions and Nationally Determined Contributions (NDCs).

It is quite possible that Pakistan will submit zero progress, even though the loss and damage resolution was moved by Pakistan in the capacity of the chair of G77. Therefore, it will be a great disappointment if Pakistan fails to ensure institutional and professional arrangements to benefit from the Loss and Damage Fund.

The United Nations also suggests that a blank cheque for purely development assistance will not help Pakistan. The country must focus on longer-term technical assistance and build its internal capacity to create resilience to future natural disasters.

At COP28, international partners and potential donors will be looking for indications that Pakistan is ready to commit to this forward-thinking strategy for tackling its climate change challenges in the years ahead. Therefore, it is essential that Pakistan immediately improves its capacity and gears up to work with relevant UN agencies, line ministries, and departments at federal and provincial levels to devise a strategic plan aiming to capitalise on the loss and damage facilities offered by COP27.

The writer is a PhD in Natural Resources Management and worked in national and regional environment and climate change agencies

Published in The Express Tribune, August 21^st, 2023.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.