After two weeks of intense negotiations, the COP27 has concluded with a deal on establishing a funding facility for loss and damage.
During the climate summit, some of the world’s poorest counties denounced the rich for delaying action and refusing financial assistance for afflicted countries.
The new fund is expected to be set up by rich nations to rebuild areas stricken by some of the worst impacts of climate change.
However, the outcome of COP27 in Egypt was heavily criticised and touted as a failure in efforts to cut global carbon dioxide emissions.
The cover decision, known as the Sharm el-Sheikh Implementation Plan, highlights that a global transformation to a low carbon economy requires an investment of at least $4-6 trillion (£3.3-5 tn) a year.
Simon Stiell, UN Climate Change Executive Secretary, said: “We have determined a way forward on a decades-long conversation on funding for loss and damage – deliberating over how we address the impacts on communities whose lives and livelihoods have been ruined by the very worst impacts of climate change.”
Moments after the official announcement of the agreement, UN Secretary-General António Guterres commented: “A fund for loss and damage is essential – but it’s not an answer if the climate crisis washes a small island state off the map – or turns an entire African country to a desert.
“The world still needs a giant leap on climate ambition.”
Responding to the outcome of the COP27, Britain’s Prime Minister Rishi Sunak said: “I welcome the progress made at COP27, but there can be no time for complacency.
“Keeping the 1.5°C commitment alive is vital to the future of our planet. More must be done.”
French President Macron said: “At COP27, France and Europe have reaffirmed their commitment to the climate. We need a new financial pact with the most vulnerable countries. I will work on this with our partners with a view to a summit in Paris before the next COP.
“Greater solidarity, greater ambition, this is how we must act to lower all our carbon dioxide emissions. All countries must make a clear commitment to phasing out coal. We are supporting those emerging countries leading the way, such as South Africa and Indonesia.”