The climate change conference remained in a stalemate on Thursday night regarding a proposal to establish a new financial mechanism to support nations affected by climate disasters. The two-week annual conference, set to conclude Friday evening, has traditionally extended into extra time, sometimes reaching Sunday morning.
An Indian proposal advocating for a phase-down of all fossil fuels faced challenges, primarily due to reservations from China and certain other developing countries. However, the central dispute revolved around the establishment of a new facility for loss and damage finance, a focal point of the meeting. Developed countries, led by the US, preferred channeling loss and damage through existing financial instruments, opposing the creation of a new infrastructure. EU’s climate chief, Frans Timmermans, argued that utilizing existing instruments would ensure an immediate flow of funds, while creating a new facility could entail years of delays.
On Thursday, the G-77 and China group, the largest negotiating block at the conference comprising over 100 developing countries, insisted on a dedicated finance facility, deeming it crucial for the meeting’s success. The group sought a political statement of intent to create the new facility, emphasizing that loss and damage are matters of climate justice, not charity.
Apart from the finance facility, disagreements persisted over who should benefit from loss and damage, as well as who should contribute to the fund. Developed countries, including the US and the European Union, urged major economies like China and India to contribute. Timmermans argued for reflecting the current economic landscape, moving beyond the traditional developed versus developing country classification.
Negotiators were expected to work through the night to resolve differences and reach compromises. The COP27 presidency released a ‘non-paper,’ an informal set of proposals, which did not mention the Indian proposal for phasing down fossil fuels. India asserted its commitment to addressing concerns in the final outcome, though sources indicated some countries in the G-77 plus China group were not very supportive of the proposal.
While a joint statement by BASIC countries on Wednesday did not mention the Indian proposal, developed countries, including the US and the EU, eventually backed it after initial hesitation. The proposal focused on the unabated use of oil and gas, emphasizing a phasedown over time. The ongoing negotiations aimed to find common ground and produce a final conference outcome.
