IEMA CEO, Sarah Mukherjee MBE, has today called for increased efforts from negotiators to secure a climate financing facility for developing nations in the final week of COP27.
The plea comes after the 5th high-level ministerial dialogue on climate finance yesterday, when delegates heard that global climate finance flows were 12% higher in 2019-2020 than during the previous two-year period.
Yesterday also saw the launch of the Global Shield insurance initiative by the G7 and V20 groups of 58 climate vulnerable economies, which will release pre-arranged finance quickly to countries before or just after disasters happen.
However, global climate finance flows are still relatively small when considering the overall needs of developing nations, and the commitment from developed countries in 2009 to provide $100bn per year has still not been met.
Speaking from Sharm El-Sheikh, IEMA’s CEO said: "There is a growing sense of urgency among nations to deliver a loss and damage financing facility, as we have heard during the ministerial dialogue on climate finance.
"It is encouraging that countries are making progress to enhance efforts – including the launch of the Global Shield insurance initiative – and an increased focus on adaptation finance
"However, we must build on this progress during the crucial final week of COP27, striking the right balance between mitigation and adaptation financing, and ensuring that transparency is at the heart of negotiations to ensure trust between developed and developing countries moving forward.
"A strong and fair decision on loss and damage finance has been described as the litmus test for a successful COP27, and I hope that negotiators use this final week to ensure that Sharm El-Sheikh leaves a lasting legacy for generations to come."
It was announced yesterday that the first recipients of adaptation finance via Global Shield packages will include Bangladesh, Costa Rica, Fiji, Ghana, Pakistan, the Philippines and Senegal.
This comes after recent V20 research found that 98% of the nearly 1.5 billion people in V20 countries do not have financial protection, and that these nations have lost a total of $525bn to climate impacts since 2000.
Some campaigners have raised concerns that the Global Shied initiative could hinder efforts from developing nations to secure a more substantive deal on financial help for loss and damage.
However, Ghana’s finance minister, Ken Ofori-Atta, described the Global Shield as a "path-breaking effort", and said that the initiative was "long overdue".
He added: "We really hope the Global Shield will not only yield impact for the most vulnerable communities, but that it will also contribute to building mutual trust and understanding to help bridge the resourcing gaps facing climate action.”