'Historic' UN climate compensation deal not enough to tackle climate change

World leaders gathered at the start of the COP27 UN Climate Summit earlier this month. Picture: AP Photo/Nariman El-Mofty

"We have treated some of the symptoms but not cured the patient from its fever."

European Commission president Ursula von der Leyen has said the UN's landmark Cop27 "loss and damage" deal, which will see financial assistance provided to poorer nations stricken by climate disaster, is “a small step towards climate justice”, but more needs to be done. 

"I am pleased that Cop27 has opened a new chapter on financing loss and damage, and laid the foundations for a new method for solidarity between those in need and those in a position to help," Ms von der Leyen said this afternoon. 

However, she warned there could be no lasting action against climate change without climate justice. 

"The European Union is already the world's leading contributor of international climate finance, and I am satisfied that we confirmed our commitment to support the most vulnerable on our planet through a first contribution on loss and damage," she said. 

Ms von der Leyen said that while Cop27 had kept the goal of limiting global temperature rises to 1.5 alive, it did not deliver on a commitment to phase down fossil fuels or to establish new commitments on climate mitigation. 

"But the EU will stay the course, notably through the European Green Deal and REPowerEU, because it is essential to keep the ambition of the Paris Agreement within reach," she said. 

Speaking in Cop27's closing plenary session, Cop26 President Alok Sharma expressed disappointment about elements of the UN agreement. 

He said that despite "historic" progress of loss and damage, the world's 1.5C ambition was now “on life support”.

Eamon Ryan hails 'historic and progressive' UN climate compensation agreement

Earlier, Minister for the Environment Eamon Ryan hailed the “historic and progressive” deal reached at Cop27 and said that it will see millions of people whose “land, water sources and livelihoods are being eroded every day” offered greater protection.

Minister for Transport Eamon Ryan. Picture:  Julien Behal

While charities welcomed the agreement, they also criticised the lack of progress in other areas with ActionAid saying that polluters had been “let off the hook” with Cop27’s “weak language on fossil fuels”.

Mr Ryan said the agreement would establish new funding arrangements to assist developing countries that are especially vulnerable to the effects of climate change.

“Progress on broadening the contributor base to now include the potential for innovative sources of funding could open the way for a landmark break from traditional thinking,” he said.

'Keep 1.5 alive'

“Such sources could potentially include sectors like aviation, shipping and the fossil fuel industry. There is now scope for exploring the potential for financing and debt relief for especially vulnerable countries from multilateral and development banks.” 

After two weeks of extensive negotiations, #COP27 has concluded with a hallmark implementation plan #SHIP, and a historic deal for agenda item and outcome on #LossAndDamage funding. pic.twitter.com/clEmx0TV7x

— COP27 (@COP27P) November 20, 2022

The Green Party leader maintained that the commitment to “Keep 1.5 alive”, which refers to the objective to ensure global warming stays within a 1.5C increase above pre-industrial levels. Experts have warned that this essential measure is looking increasingly unlikely to achieve.

Mr Ryan said: “Without mitigation, the more adaptation we would have to do, and the more Loss and Damage would cost. We have to keep 1.5 alive to keep people alive.” Despite this breakthrough, the marathon talks at Cop27 did not manage to make further progress on a number of issues.

The loss and damage package was revised again overnight, removing most of the elements Europeans had objected to but added none of the heightened ambition they were hoping for.

Echoing Mr Sharma's remarks at the conference, Mr Ryan agreed that the progress made “is not perfect”.

“The EU would have liked it to have gone further and faster,” he said.

“However, what makes this a good deal is that it is an agreed deal. It is a signal of trust between the 198 parties to the UNFCCC [United Nations Framework Convention on Climate Change] that we are serious about climate change and that we are serious about protecting especially vulnerable countries and communities.

The sun rises over Sharm el-Sheikh, Egypt. Picture: AP Photo/Peter Dejong

“The really hard work starts when we leave Sharm-El-Sheikh; when we begin to put in place the mechanisms and the expert groups that are needed to bring this agreement to life. But it’s reassuring that it has started here and that we didn’t have to leave looking to the next Cop, with mounting concern, to deal with this life and death issue.” 

In a statement, ActionAid’s global lead on climate justice Teresa Anderson said that after so many years of calling on the UN to establish a fund to help countries being pushed deeper into poverty, this was a real “pinch-me moment”.

“This loss and damage fund is long overdue, and it’s truly shocking that it has taken rich countries so long to finally agree to help those harmed by climate impacts,” she said.

“[But] climate-vulnerable communities who have been given hope through the establishing of a loss and damage fund are still being harmed by the actions of big polluters, and the underlying cause of the climate crisis has not been addressed.” 

Tróciare, meanwhile, said that the progress on Loss and Damage was a “bright spot in an otherwise underwhelming Cop”.

Its head of policy and advocacy Siobhan Curran said: “Hundreds of thousands of people in Somalia face starvation and mass displacement, with the loss of crops, livestock and livelihoods due to drought.

“This is the harsh reality of the losses and damage caused by climate change. Finally affected communities should be able to access support in the face of the devastating impacts of the climate crisis.”