Loss and damage fund talks agree on recommendation text by a hair's breadth: The final text (pdf) that will be presented to governments at COP28 recommending how the loss and damage fund will be operationalized was finally approved over the weekend, despite reservations by developing nations and the US, Reuters reported on Saturday. The approval came in the final minutes of the fifth transitional committee (TC) meeting in Abu Dhabi, which was called for in a last-ditch attempt to enter COP with recommendations, after the fourth (and what meant to be the last) meeting in Aswan failed to reach a consensus. President Designate Sultan Al Jaber welcomed the committee's recommendations and said that they would pave the way for an agreement at COP28, the newswire added. The TC — which represents a geographically diverse group of countries — agreed to recommend the World Bank serve as trustee and host of the fund for a four-year period, a point that has caused divisions between the global north and south, Reuters explains.

REMEMBER- Why aren’t developing countries keen on having the World Bank as the fund’s host? Delegates from developing nations argue that the multilateral lender may not be fit for providing green financing, given that it often views climate projects as too risky for investment, and its internal politics can hinder equal accessibility to funds. The Loss and Damage Corporation (L&DC) also mentioned concerns over the Bank’s heavy emphasis on loans and debt in its approach, as well as the control that the US and other developed countries have on its decision making. Additionally, there is a risk of outsized influence over the fund, resulting in high fees for recipient countries, Reuters added.

Developed countries need to step it up: The TC agreed to recommend that developed countries be “urged” to provide support to the fund, but failed to state that wealthy nations are under strict financial obligation to do so, the newswire reported. The invitation is voluntary and restricts support to setting up the fund rather than providing money for it. There was also no commitment that developed countries will take the lead on providing grant-based finance, L&DC said, or an agreement on the size of the fund despite experts already identifying that at least USD 400 bn is needed for loss and damage finance each year.

The US blocked consensus: The US stood as the only TC member blocking consensus by asking for last-minute changes to the text after all other TC members had already agreed to the “imperfect text,” L&DC said. The US demanded further changes regarding the sources of funds despite all requirements for developed countries being outlined as voluntary. “We regret that the text does not reflect consensus concerning the need for clarity on the voluntary nature of contributions,” a US State Department official told Reuters. Western countries have been pushing to have heavy emitters like China and Saudi Arabia put money into the fund and proposed that the fund receives capital from a broad range of sources rather than relying on developed countries, the Financial Times reported.

Looks like it will be a loan-centered fund: The text suggested that loans and ins. be provided by the fund despite concerns that this would increase the indebtedness of developing countries. While innovative sources of finance were mentioned, there were no outlined principles to ensure they would be equitable, or any details on the process or timeframe to get them contributing to the loss and damage fund.

ALSO- Divide persists over role of carbon capture in fossil fuels phase-out: The world’s nations remained at odds over an agreement to end new oil and gas projects during the pre-COP talks in Abu Dhabi last week, Financial Times reported last week. France, Spain, Ireland, Kenya, and 11 other countries called for the phasing out of fossil fuel production at the preliminary talks, and another group of 15 countries — called the High Ambition Coalition — said that carbon capture and storage (CCS) technologies should not be used to delay climate action. The coalition, along with the IPCC, suggested that CCS be used only in hard-to-abate sectors such as steel and cement, while warning against their use for power generation. On the other hand, fossil fuel producers, especially in the Middle East, pushed for CCS to be given a greater role in policy agreements.

AND- COP28 presidency releases net-zero charter to mobilize the private sector: The COP28 presidency has launched a charter aimed at encouraging the private sector to commit to a transition plan to achieve net-zero by 2050, with interim emission reduction targets and annual progress reports, according to a statement (pdf) published last week. Companies that sign the charter under the conditions outlined could be featured on the COP28 website. The charter is part of the Recognition and Accountability Framework for non-party stakeholder climate action (pdf) currently being drafted by the United Nations Framework Convention on Climate Change. The charter emphasizes that the private sector represents the majority of the world's energy consumption and greenhouse gas emissions, making it a crucial player for driving the global goal to cut emissions by 43% by the end of the decade.

Transparency is key to ensuring accountability + progress in meeting targets: The charter sets a condition that the net-zero targets determined by the private companies must be either through a net-zero aligned national pledge, an internationally recognised net-zero initiative that holds members accountable, or be done individually with a strategy that is commensurate with public, third-party validation that carries out an accepted science-based review process. A progress report will be issued by December 2024 to verify that signatories have taken the actions outlined in the charter.

OTHER COP28 STORIES WORTH KNOWING ABOUT THIS MORNING-

• AUC is launching a sustainability training program in the UAE: The American University in Cairo has signed an MoU with the UAE’s Climate Change and Environment Ministry, Dubai International Financial Centre (DIFC) Academy, and the UAE University Leadership Council to deliver an “executive diploma in sustainability” to train 200 public servants in the UAE. The program consists of four sustainability models focusing on water, food, green energy resources in the region, and grassroots innovation. (Statement, pdf)

• Francis will be the first pope to attend a COP summit: Pope Francis will be in Dubai from 1-3 December to attend the COP28 climate summit, he told Italy's state-run RAI television TG1 news on Wednesday. The pope’s attendance will mark the first time a pontiff attends the climate summit since it was first founded in 1995. The pope has made climate protection one of the priorities of his papacy, and had a meeting last month with COP28 President Sultan Al Jaber. (Reuters)