Whilst it’s undoubtedly great news that an agreement on a deal to compensate vulnerable nations for loss & damage was made on the very first day of this somewhat contentious COP28 meeting, let’s not forget that words are one thing, actions something entirely different.

A financially successful friend of mine attended a much more intimate conference of HNW principals, hosted by a well known HNW bank and his comment was, “The people at this (HNW’s) meeting were only interested in their investments performance, regardless of what the investment is!! Their focus is what’s happening now, not 5 years down the line.”

It’s a salient point worth remembering when the global economy points its finger at the Financial Community or protest outside their offices. They are servants of their clients, acting under instruction. Lofty ambitions require clarity, stamina & commitment to come into effect.

Nonetheless, here’s what happened on Day 1 of COP28 so let’s take solace in that at least:

Agreement on Loss and Damage Deal Reached on First Day of COP28 Talks

The 28th Conference of the Parties (COP28) is currently underway, and on the very first day of talks, a significant milestone has been achieved. Delegates from across the globe have reached an agreement on loss and damage, a crucial aspect of climate change negotiations.

Loss and damage refers to the harm and costs incurred by countries as a result of climate change impacts that cannot be mitigated or adapted to. It encompasses both economic and non-economic losses, such as damage to infrastructure, loss of lives, and the permanent loss of territories due to rising sea levels.

The agreement reached at COP28 acknowledges the urgent need to address loss and damage and outlines various measures to tackle the issue. One of the key elements of the deal is the establishment of a dedicated financing mechanism to provide support to vulnerable countries facing loss and damage. This mechanism aims to provide funding for both adaptation and compensation for irreversible losses.

Furthermore, the agreement emphasizes the importance of technology transfer and capacity-building initiatives to help developing countries enhance their resilience and ability to deal with loss and damage. This recognition of the differing capabilities and responsibilities of countries is significant in ensuring a fair and just approach to addressing the effects of climate change.

The deal also highlights the need for continued research and assessment of loss and damage. This scientific basis will assist in identifying the most effective interventions and monitoring progress in reducing and managing loss and damage.

The agreement is a major breakthrough in the international effort to combat climate change. Loss and damage have long been a contentious issue in climate negotiations, with developing countries arguing for compensation for the historic emissions of developed nations. The deal reached at COP28 demonstrates a commitment to addressing the concerns of vulnerable countries and recognizing the need for financial and technical support.

However, it is important to note that the agreement is just the beginning of a long journey. The implementation and effectiveness of the financing mechanism will be crucial in ensuring that the support reaches those who need it the most. Ongoing discussions and negotiations will be necessary to refine and enhance the agreement over time.

As the COP28 talks continue, the agreement on loss and damage sets a positive tone for the discussions on other pressing climate change issues, such as mitigation, adaptation, and finance. The recognition of loss and damage as a distinct and urgent issue highlights a growing global understanding of the impacts of climate change and the need for collective action.

In conclusion, the agreement reached on the first day of COP28 talks on loss and damage is a significant achievement. It represents a step forward in addressing the concerns of vulnerable countries and recognizing the need for support in the face of irreversible climate impacts. As the conference progresses, it will be crucial to sustain the momentum and ensure the effective implementation of the agreement to make a real difference in the lives of those most affected by climate change.