COP27: Pakistan Leads Push For "Loss and Damage" Compensation at Sharm El-Sheikh

[Riaz Haq]

COP27, the United Nations climate summit,  opened in Egypt on Sunday with the addition of negotiations over funding to compensate nations for “loss and damage” as an official agenda item. Pakistan led the push for it with the support of 134 developing nations. Discussions at COP26 in Scotland were mainly focused on funding "mitigation" and "adaptation", not compensation for "loss and damage".  

Pakistan Pavilion at COP27 Conference in Sharm Al-Sheikh, Egypt

The "loss and damage" agenda item was proposed by Pakistan during talks at Bonn after the country suffered heavy losses in unprecedented floods that hit a third of the country.  “My country, Pakistan, has seen floods that have left 33 million lives in tatters and have caused loss and damage amounting to 10% of the GDP,” said Ambassador Munir Akram, the 2022 chair of the G77—a group of 134 developing countries, at the opening session of COP27 at Sharm al-Sheikh, Egypt. 

Cumulative CO2 Emissions By Country/Region. Source: The World

Pakistan has contributed only 0.28% of the CO2 emissions but it is among the biggest victims of climate change. The US, Europe, India, China and Japan, the world's biggest polluters, must accept responsibility for the catastrophic floods in Pakistan and climate disasters elsewhere. A direct link of the disaster in Pakistan to climate change has been confirmed by a team of 26 scientists affiliated with World Weather Attribution, a research initiative that specializes in rapid studies of extreme events, according to the New York Times. 

Top 5 Current Polluters. Source: Our World in Data

Currently, the biggest annual CO2 emitters are China, the US, India and Russia. Pakistan's annual CO2 emissions add up to just 235 million tons. On the other hand, China contributes 11.7 billion tons, the United States 4.5 billion tons, India 2.4 billion tons, Russia 1.6 billion tons and Japan 1.06 billion tons. 

Pakistan's Annual CO2 Emission. Source: Our World in Data

The United States has contributed 399 billion tons (25%) of CO2 emissions, the highest cumulative carbon emissions since the start of the Industrial Revolution in the late 18th century. The 28 countries of the European Union (EU28), including the United Kingdom, come in second with 353 billion tons of CO2 (22%), followed by China with 200 billion tons (12.7%). 

Cumulative CO2 Emissions. Source: Our World in Data

Pakistan's cumulative CO2 contribution in its entire history is just 4.4 billion tons (0.28%). Among Pakistan's neighbors, China's cumulative contribution is 200 billion tons (12.7%),  India's 48 billion tons (3%) and Iran's 17 billion tons (1%).  

Developing Asian Nations' CO2 Emissions. Source: Our World in Data

Pakistan has contributed little to climate change but it has become one of its biggest victims. In the 2015 Paris agreement on climate change, signatories agreed to recognize and “address” the loss and damage caused by those dangerous climate impacts, according to the Washington Post. Last year, at the major U.N. climate conference in Glasgow, Scotland, negotiators from developing countries tried to establish a formal fund to help the countries like Pakistan most affected by climate disasters. It was blocked by rich countries led by the Biden administration. Formal addition of "loss and damage" item at this year's COP27 conference agenda is a good start. Let's hope that a formal  fund is established by the world's top polluters to compensate Pakistan and other developing nations. 

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[Riaz Haq]

Blog Post by Andrew Gordan, Guest Contributor


https://www.cfr.org/blog/increasing-us-aid-pakistan-strategic-and-m...


The severity of these converging obstacles underscores the need for adequate U.S. aid to Pakistan. Unfortunately, these days Pakistan has few friends in Washington. Many U.S. observers have accused Pakistan of enabling the Afghan Taliban throughout the U.S. war in Afghanistan. In addition, advocates of the budding U.S.-India relationship worry that engagement with Pakistan might disrupt ties with the Modi administration. Concerns about corruption have also tarnished attempts to build support for more aid.

Despite these concerns, the United States should act to alleviate the crisis in Pakistan. On one hand, if the United States wants to honor its commitments to humanitarianism, aid to Pakistan should be a top moral priority. The Biden administration has pledged to “rally the world to meet our common challenges.” The destructive effects of climate change that Pakistan is suffering today is a common challenge. Furthermore, norms of environmental justice compel countries who built their riches on the degradation of the environment, like the United States, to help Pakistan, one of the world’s most climate-vulnerable nations and a negligible contributor to historical global emissions.

On the other hand, even American pragmatists should heed Pakistan’s need for aid. Catastrophe in Pakistan is not in the U.S. national interest. A destabilized Pakistan would spell disaster for regional security: a depleted Pakistani government would inevitably give regional militant groups like the Tehreek-e-Taliban Pakistan more breathing room. In addition, a Pakistan in crisis would likely be less capable of performing its role at the center of the new U.S. “over-the-horizon” counter-terrorism strategy. Operations like the recent U.S. killing of Al Qaeda leader Ayman al-Zawahiri require Pakistani support, coordination, and airspace. Finally, as the United States seeks to counterbalance Chinese influence in South Asia, increased aid could capitalize on growing reservations in Pakistan about the tight-knit economic relationship with China.

So how should the United States assist Pakistan? For starters, the overall level of assistance should increase dramatically, as the $97 million pledged thus far will have a minimal impact on Pakistan’s predicament. The United States can help with the flood recovery in other ways: technical teams to support the construction of climate-resilient infrastructure and health supplies to address growing outbreaks of waterborne diseases, for example. The United States can also do more to address Pakistan’s financial health. The recent rollover of the suspension of payments on $132 million in debt was a good start, but the United States must continue to rally international debtors to suspend and restructure Pakistani debt, replenish foreign exchange reserves, and support crucial imports. The future of the South Asian nation, and U.S. regional interests, depend on it.

[Riaz Haq]

White House climate advisor (Karachi-born Ali Zaidi) addresses the unresolved questions (loss and damage fund) left after COP27 : NPR

https://www.npr.org/2022/11/17/1137495941/white-house-climate-advis...

[Riaz Haq]

India has opposed the developed world's efforts to extend the scope of mitigation to agriculture at the ongoing U.N. climate summit in Egypt, saying rich nations do not want to change their lifestyles to reduce emissions and are "searching for cheaper solutions abroad", sources said on Thursday.

https://www.thehindu.com/sci-tech/energy-and-environment/climate-su...

Expressing concern over the draft decision text on the Koronivia Joint Work on Agriculture, India said developed countries are blocking a pro-poor and pro-farmer decision by insisting on expanding the scope for mitigation to agriculture, thereby compromising the very foundation of food security in the world, a source in the Indian delegation said.


In most developing countries across the world, agriculture is done by small and marginal farmers who toil hard and brave the vagaries of extreme weather and climate variability as well as the additional stress of climate change.

[Riaz Haq]

#COP27 : Fresh hope for climate talks after #climate "loss and damage" fund offer by rich nations. The devastating #FloodsInPakistan this summer, which killed about 1,700 people, have been a powerful backdrop to talks in #Egypt. #Pakistan #LossAndDamage https://www.bbc.com/news/science-environment-63677463

A promise from the developed world to foot more of the climate bill has raised fresh hopes of breakthrough at the UN climate summit COP27.

Nations meeting in Sharm el-Sheikh, Egypt, worked late into Thursday night to find agreement over what has been the biggest sticking point.

The European Union has suggested a new fund to help poor nations deal with climate disaster.

Developing nations insist they will push for the best deal on the table.

Vulnerable nations including Pakistan, which leads developing countries here, say richer nations owe this money because they historically released most of the greenhouse gases that cause global warming.

The devastating floods in Pakistan this summer, which killed about 1,700 people, have been a powerful backdrop to talks in Egypt.

But rich nations are worried about signing a blank cheque. At the start of the summit, the US was adamant there would be no new fund, and it has been silent in negotiations, observers say.

In a possible breakthrough on Friday morning, the European Union proposed a special fund that would be funded by a "broad donor base".

That suggests that China, a country which now emits large amounts of greenhouse gases (those gases that warm the atmosphere), could contribute too.

China is usually in the same group as developing nations, and historically contributed little to global warming. But this fund could call on them to help pay the bill.

"It's great to see some leadership finally, but we'll see what we get out of this," Nisha Krishnan from the World Resources Institute told BBC News.

The EU's proposal "comes with strings attached" and it is not supported by all developing nations, says Prof Michael Wilkins at Imperial College Business School in London.

The question of this money, known as loss and damage, has dominated COP27. Nations at severe risk from climate disaster were pleased to get it on the agenda, after 30 years of trying.

The deal is not yet over the line.

Talking about the funding, Ms Krishnan said "this is the biggest thing that could make or break this conversation".

It will be important to see what the US does as well as China, she suggests.

Outside of the negotiation rooms, NGOs and activists continue to call for much stronger promises from COP27 on getting rid of fossil fuels.

[Riaz Haq]

A deal was struck at the #COP27 climate talks to set up a fund that would pay for #climate-related damage in countries deemed particularly vulnerable. #Pakistan #lossanddamage #floods

https://www.wsj.com/articles/cop27-agrees-on-loss-and-damage-fund-f...

https://twitter.com/haqsmusings/status/1594070634622951424?s=20&...

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SHARM EL SHEIKH, Egypt—A deal was struck at United Nations climate talks on Saturday to set up a fund that would pay for climate-related damage in countries deemed particularly vulnerable, officials said, handing a victory to poorer nations that have pushed for the move for years and removing a major sticking point in broader negotiations to address global warming.

The fund would earmark money for what is known as loss and damage: When rising seas, more powerful storms and other effects that scientists link to climate change cause destruction that is sudden or potentially irreparable.

Negotiators representing developed and developing countries agreed to the measure in the final hours of the COP27 U.N. climate summit held in this Egyptian seaside resort. Officials cautioned that the deal on loss and damage was part of a broader agreement that is still under negotiation. Wealthy nations want stronger commitments from developing countries to cut emissions in the coming decade in hopes of meeting the climate targets of the Paris accord. Those call for governments to limit temperature increases to well under 2 degrees Celsius and preferably 1.5 degrees compared with the preindustrial era.

The fund would be targeted toward poorer countries deemed most vulnerable, delegates said, a key demand from wealthy nations that didn’t want money flowing to China and other higher-income countries that are deemed to be developing under the U.N. climate treaty. As part of the process for creating the fund, countries would identify new sources of financing, officials said. Wealthy countries want China, oil-rich Persian Gulf states and other higher-income countries in the developing world to contribute.

Small island countries and low-lying nations such as Bangladesh have for decades sought money to pay for loss and damage. Wealthy countries, which are responsible for most of the greenhouse-gas emissions that have caused the earth to warm, have long resisted, fearing that agreeing to make payments would leave their governments and companies at risk of lawsuits.

A senior Biden administration official said Saturday’s deal wouldn’t create legal liability.

Heading into the talks, the U.S., Europe and other rich nations said that a new fund wasn’t necessary and that money for loss and damage can flow through existing institutions that provide climate finance for the developing world.

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European negotiators asked whether that was the position of AOSIS, whose members are also members of the Group of 77. The Maldives’ environment minister, representing AOSIS, asked for a 30 minute break to discuss the issue with the Group of 77.

Negotiators from the two groups returned to the room saying they were willing to support a fund that would be targeted to particularly vulnerable countries as the EU wanted.

In recent years, the demand for a separate fund became a rallying cry for poorer countries seen as most vulnerable to climate change. Many developing countries have pointed to the scale of monsoon rains and floods in Pakistan this year, which have left the country with losses and rebuilding costs assessed by the government and World Bank at $30 billion, as an example of what vulnerable countries could increasingly contend with. Less than half of Pakistan’s $816 million international emergency appeal has been funded.

[Riaz Haq]

In a First, Rich Countries Agree to Pay for Climate Damages in Poor Nations - The New York Times

“Pakistan, which spearheaded a group of 134 developing nations pushing for loss and damage payments, provided a fresh reminder of the destructive forces of climate change.”

https://www.nytimes.com/2022/11/19/climate/un-climate-damage-cop27....


After 30 years of deadlock, a new U.N. climate agreement aims to pay developing countries for loss and damage caused by global warming. But huge questions remain about how it would work.

SHARM EL SHEIKH, Egypt — Negotiators from nearly 200 countries agreed for the first time to establish a fund that would help poor, vulnerable countries cope with climate disasters made worse by the pollution spewed by wealthy nations that is dangerously heating the planet.

The decision regarding payments for climate damage marked a breakthrough on one of the most contentious issues at United Nations climate negotiations. For more than three decades, developing nations have pressed for loss and damage money, asking rich, industrialized countries to provide compensation for the costs of destructive storms, heat waves and droughts fueled by global warming.

But the United States and other wealthy countries have long blocked the idea, for fear that they could be held legally liable for the greenhouse gas emissions that are driving climate change.

The agreement hammered out in this Red Sea resort town says nations cannot be held legally liable for payments. The deal calls for a committee with representatives from 24 countries to work over the next year to figure out exactly what form the fund should take, which countries should contribute and where the money should go. Many of the other details are still to be determined.

The creation of the a loss and damage fund was almost derailed by disputes that ran into the dawn hours of Sunday over other elements of a broader agreement, including how deeply countries should cut their emissions and whether to include language that explicitly called for a phaseout of fossil fuels, including coal, natural gas and oil. By 5 a.m. in Egypt, negotiators were still debating those other measures.

Developing nations — largely from Asia, Africa, Latin America, the Caribbean and South Pacific — fought first to place the loss and damage fund on the formal agenda of the two-week summit. And then they were relentless in their pressure campaign, arguing that it was a matter of justice, noting they did little to contribute to a crisis that threatens their existence. They made it clear that a summit held on the African continent that ended without addressing loss and damage would be seen as a moral failure.

“The announcement offers hope to vulnerable communities all over the world who are fighting for their survival from climate stress,” said Sherry Rehman, Pakistan’s minister for climate change. “And gives some credibility to the COP process.”

Pakistan, which spearheaded a group of 134 developing nations pushing for loss and damage payments, provided a fresh reminder of the destructive forces of climate change. Over the summer, Pakistan suffered devastating flooding that scientists say was made worse by global warming, resulting in more than 1,500 deaths, plunging one-third of the country underwater and causing $30 billion in damages, even as Pakistan contributes less than 1 percent of the world’s planet-warming emissions.

As the summit was nearing an end, the European Union consented to the idea of a loss and damage fund, though it insisted that any aid should be focused on the most vulnerable nations, and that aid might include a wide variety of options such as new insurance programs in addition to direct payments.

[Riaz Haq]

‘We couldn’t fail them’: #Pakistan brought that resolve to negotiations at #COP27 &, as president of the #G77 plus #China negotiating bloc, succeeded in keeping developing countries united on #lossAnddamage, despite rich nations' strong opposition. #Floods https://www.theguardian.com/environment/2022/nov/20/loss-and-damage...

With the deadly devastation fresh in the world’s mind, Pakistan pushed for damage funds with other frontline countries

Nina Lakhani
@ninalakhani

In early September, after unprecedented rainfall had left a third of Pakistan under water, its climate change minister set out the country’s stall for Cop27. “We are on the frontline and intend to keep loss and damage and adapting to climate catastrophes at the core of our arguments and negotiations. There will be no moving away from that,” Sherry Rehman said.

Pakistan brought that resolve to the negotiations in Sharm el-Sheikh and, as president of the G77 plus China negotiating bloc, succeeded in keeping developing countries united on loss and damage – despite efforts by some rich countries to divide them. Its chief negotiator, Nabeel Munir, a career diplomat, was backed by a team of savvy veteran negotiators who had witnessed the devastation and suffering from the floods, which caused $30bn (£25bn) of damage and economic losses. Every day, Munir repeated the same message: “Loss and damage is not charity, it’s about climate justice.”

It was the first time the G77, which includes a diverse range of countries with an array of climate, economic and security challenges, had shown such unity since 2009, when they rejected the Copenhagen accord at Cop15, according to Asad Rehman, of the UK charity War on Want. “Without the leadership of Pakistan, we wouldn’t have the outcome,” he said. “Their diplomats are experienced in maintaining G77 discipline and unity, and prevented attempts by the EU and others to turn the least developed countries group and the Alliance of Small Island States against the other countries and accept a narrow fund.”

Meena Raman, the director of Third World Network and an expert on the UN climate summits, agreed: “We saw attempts to split the G77, with overtures made by the rich countries to the vulnerable 20, in an effort to put pressure on countries like China and India to contribute to the fund. We have seen such divide-and-control efforts time and time again. But when the G77 remains strong, we get good outcomes; if they are divided, developing countries lose.”

Despite the multitude of disappointments at Cop27, failing on loss and damage was not an option, according to Munir. “Our resolve came from seeing the victims of the catastrophic floods that we faced,” he said. “The thought that it might not happen came many times, but the whole country – and developing world – was watching us and we couldn’t fail them.”

But Pakistani officials cannot take all the credit. Zaheer Fakir, a South African negotiator, singled out the Egyptian diplomat Mohamed Nasr for getting loss and damage over the line. “He was doing the consultations with all the groups [parties] and fixing the cover [final] decision,” he said.

Fakir cautioned against premature celebrations. “It’s not really a victory yet. All that was decided has been the establishment of funding arrangements and the fund … [There are] no specific contributions or notion on size, which will need to be unpacked.”

Civil society pressure was critical in building and unifying momentum around loss and damage since Cop26 in Glasgow, as part of the growing campaign for climate justice.

Despite Egypt’s best efforts to silence dissent, small but powerful protests demanding climate justice took place almost every day inside the negotiating zone, and the world’s media broadcast activists and experts calling out the US, UK, EU and other world leaders.

[Riaz Haq]

Pakistan Flood Recovery Plan Key to Continued Financial Support -IMF

https://money.usnews.com/investing/news/articles/2022-11-23/imf-fin...

ISLAMABAD (Reuters) - Pakistan's timely finalisation of a recovery plan from devastating floods is essential to support discussions and continued financial support from multilateral and bilateral partners, the International Monetary Fund (IMF) said on Wednesday.

Pakistan was already battling a full-blown economic crisis, with decades-high inflation and dwindling foreign exchange reserves, when it was hit by floods earlier this year. It had entered a $6 billion IMF bailout programme in 2019, and the ninth review is currently pending.

"The timely finalization of the recovery plan is essential to support the discussions, along with continuing financial support from multilateral and bilateral partners," IMF resident representative Esther Perez Ruiz said in a message to Reuters.

She added that IMF staff is continuing discussions with Pakistani authorities over policies to reprioritize and better target support toward humanitarian needs, while accelerating reform efforts to preserve economic and fiscal sustainability.

Devastating floods killed more than 1,700 people and inflicted billions of dollars of damage. Pakistani authorities' estimates of the damage have varied from $10 billion to $40 billion.

Pakistan's finance ministry said last week that it would "expeditiously" finish technical engagement with the IMF as part of the ninth review of the programme, but a firm date for the review completion is yet to be announced.

The funds will be a lifeline for the South Asian nation, which is struggling to convince international markets and ratings agencies that it has the funds to meet external financing requirements, including debt repayments.

Pakistan has a $1 billion international bond repayment due early next month. Its total foreign reserves with the central bank stood at $7.9 billion as of last week.

(Reporting by Gibran Peshimam; Editing by William Maclean and Leslie Adler)

[Riaz Haq]

How Pakistan emerged as a climate champion
A country not known for leadership at home provides some abroad

https://www.economist.com/asia/2022/11/24/how-pakistan-emerged-as-a...

Pakistan is not often praised for its leadership. Yet its climate change minister, Sherry Rehman, was one of the star turns at the un climate talks held in Sharm el-Sheikh last week. At the helm of the “g77+China” negotiating group of developing countries, Ms Rehman won plaudits for shepherding a new deal to channel money from rich countries to poor ones that have suffered climate-related disasters. It was the annual climate jamboree’s single main achievement.

Ms Rehman, a former journalist, information minister and ambassador to America, blends well-heeled glamour and toughness. A rare champion of Pakistani liberalism, the 61-year-old Karachiite is known for her fights against honour killings and the country’s cruel blasphemy laws. They have earned her multiple death threats. She also bears scars from a suicide blast aimed at her friend Benazir Bhutto (the former prime minister survived that jihadist attack, but not one weeks later). By comparison, the talks in Sharm el-Sheikh must have seemed like the holiday camp that the Egyptian town usually is.

Yet Ms Rehman was also assisted by the fact that the massive floods Pakistan suffered this year, costing an estimated $30bn in damages, are one of the biggest climate-related disasters on record. They gave moral authority to her argument that poor countries should receive “loss and damage” funds from the rich countries whose emissions have contributed to such calamities. A study attributes the engorged monsoon floods in part to global warming. Yet Pakistan is responsible for less than 1% of the stock of global emissions.

Pakistani environmental activists, a subset of the country’s embattled liberal campaigners, hope Ms Rehman’s triumph will stir more climate action back home. It had been modestly increasing before the floods—with, for example, a few cases in which activists sued the government for neglecting its environmental commitments. Yet Pakistan’s climate change ministry is vastly underfunded. Just $43m were allocated to it this year from a federal budget of $47bn. A proposed national climate change authority has yet to be formed, five years after a law was passed to facilitate it. Pakistan, which experiences some of the hottest temperatures on Earth, has only just begun serious work on a national adaptation plan.

The floods helped publicise such shortcomings. Pakistan’s few climate experts were suddenly hot property on the country’s news channels. But will that focus be maintained? As the government scrambles to provide flood relief, it is giving little thought to climate-proofing against future disasters. Before the floods, Ms Rehman was pushing a $11bn-17bn initiative to regenerate the Indus river that supports the livelihoods, indirectly or directly, of over 200m people. But funds that might have been earmarked for the programme are now going on flood relief.

The heightened global attention she has brought to Pakistan’s flood losses could attract a lot more money and relevant expertise. That could make the country a poster child not only for loss-and-damage activism but, more usefully, for long-term planning and climate resilience. There is a precedent for this. After a devastating cyclone in 1970 Bangladesh built one of the world’s best disaster preparedness schemes. A tragic, likelier scenario would see the momentum generated by Pakistan’s calamity and Ms Rehman’s astute diplomacy lost in a protracted relief effort and Pakistan’s usual obsessions with politics and scandal. At least, until the floodwaters rise again.■

[Riaz Haq]

Saudi Arabia’s KS Relief starts distributing winter kits in Pakistan

https://www.bolnews.com/pakistan/2022/11/saudi-arabias-ks-relief-st...


ISLAMABAD: King Salman Humanitarian Aid and Relief Centre (KS Relief) has started a project to distribute 25,000 winter kits among recent flood-affected and deserving people living in Pakistan.

The project has been launched in collaboration with National Disaster Management Authority (NDMA), said a statement by Embassy of Saudi Arabia in Pakistan.

It said this year, life-threatening floods caused by unusually heavy monsoon rains have affected 33 million people in Pakistan. The KS Relief Centre is engaged in providing emergency aid to the flood-affected areas of Pakistan to help people to cope with the disaster, it added.

The winter relief package will be distributed in 14 districts of Pakistan including Ganache, Skardu, Nagar, Astor, Ghazar, Chitral, Swat, Upper Dir, Mansehra, Dera Ismail Khan, Dadu, Jamshoro, and Qamber-Shahdadkot.

The package includes 50,000 polyester quilts and 25,000 winter kits, including warm shawls for men and women and warm clothes for children and adults.

King Salman’s relief package will be distributed transparently with the help of NDMA and provincial government, which will benefit more than 175,000 people in these districts.

KS Relief provided humanitarian aid to flood-hit Pakistan and distributed relief goods in the flood-hit areas of Punjab, Sindh and rest of the country.

Saudi Arabia had established an air-bridge to deliver relief goods to Pakistan as well as launched the Sahem portal to receive donations from the general public for the flood victims.