As the two-week conference at the seaside resort town of Sharm el-Sheikh ends today, Egypt’s COP27 president has called on negotiators to resolve their disagreements in finalizing the climate agreement. The developing nations criticized the draft for failing to address their need for funding to tackle climate-driven storms, droughts, and floods. It also does not push for a phase-down of all fossil fuels.

The first draft of an agreement at the climate summit maintained the objective of limiting global warming to 1.5 degrees Celsius while leaving many of the most controversial topics unresolved. It is highly likely to be reworked as climate envoys strive to reach an overarching agreement before today’s deadline.

“Time is not on our side; let us come together now and deliver by Friday,” COP27 President Sameh Shoukry said to delegates in a letter published on Thursday. 

The 20-page draft for a hoped-for final agreement reiterates last year’s Glasgow Climate Pact goal of limiting warming to 1.5 degrees Celsius and “welcomes” the fact that delegates had begun discussions for the first time on establishing a so-called loss and damage fund for countries ravaged by climate impacts.

CLIMATE FINANCING

Climate-vulnerable countries, mainly small island states, have pointed out that while the draft agreement references loss and damage, it does not include provisions for establishing a fund, which is a crucial demand in the discussions that delegates are concerned may impede a final agreement. 

Wealthy nations have long opposed a loss and damage fund, fearing it would expose them to an indefinite financial obligation for their past contribution to climate change.

Meanwhile, on the sidelines of the UN Climate Change Conference, Fahad Alajlan, the president of the King Abdullah Petroleum Studies and Research Center (KAPSARC), underlined the crucial importance of climate financing in achieving the Paris Agreement targets. 

“We have to address and acknowledge that we come up short and need to do more in climate finance — this is vital,” he said, adding that multilateral development banks and donors play an important role in attracting institutional investors by de-risking energy and infrastructure projects through equity investment.

During COP27, KAPSARC unveiled the second edition of the Circular Carbon Economy Index, a tool that compares how 64 countries are reducing CO2 emissions via diverse approaches and technologies.

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