Skip to main content

COP27: Compensation for developing countries due to climate change damage. Jeongmin Yoon, ESG Intern, American University.

 

 Sameh Shoukry, president of the COP27 climate summit, receives a standing ovation following a speech during the closing plenary session at the U.N. Climate Summit, Sunday, Nov. 20, 2022, in Sharm el-Sheikh, Egypt. (AP Photo/Peter Dejong)

At the 27th General Assembly of the Parties to the United Nations Framework Convention on Climate Change (COP27), the creation of a fund to compensate developing countries for "loss and damage" due to climate change was approved.

COP27 closed on the 20th of November (local time) after adopting the final agreement, the "Sharm el-Sheikh Implementation Plan," two days after the original closing date. The general meeting was held in Egypt on the African continent, which has been severely damaged by global warming (extreme drought), factors like "adaptation" and "loss and damage" were discussed as the biggest issues between developed and developing countries. At the general meeting, developing countries demanded greater responsibility from developed countries that have emitted huge amounts of greenhouse gases in the process of industrialization. This is because climate-related damage, like rising sea levels, is increasing rapidly in underdeveloped countries. These countries are less infrastructure intensive than advanced countries, and climate damage impacts them even more.  In particular, a resolution calling for compensating countries by financing "loss and damage" caused by climate change was adopted for the first time in 30 years. This had not occurred since the UNFCCC was adopted, and after fierce negotiations throughout the 27th general meeting, it agreed to establish a fund for the most vulnerable countries.

According to a report released in June, 55 countries most vulnerable to climate change suffered $525 billion (about 705 trillion won) in damage from climate disasters over the past 20 years. Some studies estimate that this will reach $580 billion by 2030. In addition, the cost of responding to climate change in developing countries will increase, exceeding 3,000 trillion won per year by 2030. The report estimates that the investment needed to enable developing countries around the world to exit fossil fuels and respond to extreme climate change will be $1 trillion (about 1,388 trillion won) in 2025 and $2.4 trillion (about 3,330 trillion) in 2030.

From developed countries to developing countries, compensating losses and damages, detailing the kind of damage compensated for in the future, detailing exactly who will pay the compensation, and in what way are the next steps expected to materialize. As of today, no clear discussion of compensation has been released yet, and the U.S. drew a line by stating clearly that they were not agreeing to an obligation but, rather, agreeing to provide assistance on the social dimension. I think agreeing to provide ANY compensations was of great significance, and am please that compensation for developing countries due to global warming has been adopted on the agenda, but I wonder how much actual compensation will reach developing countries. I think it will be necessary to continue to think and talk about about climate issues and to pay close attention to further compensation mechanics to make this agreement effective.

Popular posts from this blog

Projected Impact of Gun Laws on Corporate Profits in Texas

More Fortune 500 companies are located in Texas than in any other state. Texas successfully used low taxes and minimal regulations as bait to recruit companies like Tesla and Oracle. The state promoted these “advantages” in ads highlighting their “free-market” environment and criticizing the "tax and spend policies of liberal leadership" in Democrat-run states. Four million people migrated to Texas over the past ten years. Our economic models predict a reversal, however. State of Texas corporations on the Fortune 1000 list generate $2.2 trillion in revenue, $158 billion in profit. They have a market value of $3.8 trillion and employ 2.5 million people nationwide. We continue to believe this increased corporate presence in Texas imposes a tax on the nation as a whole. Texas allows anyone 21 or older to carry handguns without training or licenses, and maintains lower gun purchase age limits. Beyond the recent abortion bill, which allows people to sue those who "aid and abe

SUMMARY: THE INFLATION REDUCTION ACT OF 2022

The Inflation Reduction Act of 2022 (IRA) is a law passed by the 117th United States Congress in August 2022. It "includes a first-time provision that would allow the U.S. Department of Health and Human Services to negotiate prices of certain prescription drugs in Medicare and Medicaid. Savings would be generated by requiring drug manufacturers to pay a rebate for drugs whose prices increase faster than inflation under Medicare, and would create several reforms in the Medicare drug program, also known as Part D, including a cap on out-of-pocket drug spending for seniors beginning in 2025. It also extends by three years the expanded and enhanced Affordable Care Act tax credit ahead of planned premium increases set to take effect in 2023." We estimate the impact on the African American community to be significant, on the order of 8% of the total. (For a detailed analysis, email info@creativeinvest.com). The law's climate provisions consist of "subsidies for energy that

March FOMC Minutes: Federal Reserve Policy Errors Continue

We note that, according to the minutes of the March 15-16 2022 Federal Open Market Committee (FOMC) meeting, the Federal Reserve Board "reached consensus..that they would begin reducing the central bank balance sheet by $95 billion a month, likely beginning in May. There also were strong indications that half-percentage point, or 50 basis point, interest rate increases are ahead." This action is consistent with past policy errors: on July 15, 2015, Janet Yellen, then Chair of the Federal Reserve stated that "the Fed's concerns about inflation limit its ability to address high African-American unemployment."  This is indicative of the continuing inability of Fed policy makers to successfully balance social and financial policy when social policy goals do not serve the interest of non-minority, non-wealthy populations. As the Fed itself noted "the..balance sheet has grown to $8.9 trillion from $8.1 trillion in July, reflecting continued net asset purchases of