With just $69 million in the bank account of the fledgling loss and damage fund so far, its new executive director was urged to keep running costs as low as possible at his first board meeting this month.
Board members from 26 governments around the world questioned the fund’s current and planned spending on consultants, business-class plane tickets and the need to have a deputy executive director, at the four-day meeting in the Philippines.
Harjeet Singh, a climate activist who was at the meeting, told Climate Home the fund’s secretariat “must exercise the utmost caution and prudence in utilising resources intended for vulnerable communities recovering from climate impacts. It bears a profound responsibility to make decisions judiciously, particularly concerning its size and travel expenditures.”
Climate survivors’ fund
Governments agreed to set up the fund, which aims to help people whose lives have been shattered by extreme weather and rising seas fuelled by climate change, at the COP27 climate summit in Sharm el-Sheikh in Egypt, after three decades of advocacy led by island nations.
Negotiators on the fund’s board – 12 from developed and 14 from developing nations – have spent the two years since then discussing the details of how the fund will work and, in September, they chose Senegalese-American banker Ibrahima Cheikh Diong to be its first executive director.
Senegalese banker Ibrahima Cheikh Diong picked to lead new loss and damage fund
At his first meeting with the board last week in Manila, Diong laid out his plan to get the organisation up and running so that it can start giving out money by the end of 2025.
The plan involves extensive use of external consultants – but some board members pushed back against the costs involved. Diong presented a budget that set aside nearly $0.7m to pay consultants in the first six months of 2025, out of a total budget of $4.3m.
Sudanese board member Sumaya Zakieldeen said the organisation – whose full name is the Fund for Responding to Loss and Damage – should move towards getting in-house staff to do as much of the work as possible, as fast as possible next year.
She said she found the prospect of waiting until 2026 to get most of the staff hired “a little bit scary” because it would mean using external advisers and consultants in the interim – “and we know the cost implications of that”.
Fiji’s Daniel Lund, however, said he supported the use of short-term consultants so that the fund can stay on track. “We don’t see any other way to deliver that substance in the time-frames that we put in place,” he said.
World Bank raises $100 billion for poor nations in boost for climate finance
Business-class controversy
A further $0.6m will be spent on staff travel in the first half of 2025. As the fund is hosted by the World Bank, it has taken on the bank’s human resources policy, including its travel policy which allows staff to go business class if the flight is over five hours.
Denmark’s Jens Fugl said the $0.6m was “substantial”, adding that “travel should be on a need-to basis” and “not everyone from the secretariat needs to be at all board meetings, because that would really be a significant cost that we should try to avoid”.
Diong replied that he wanted to develop a “bottom-up approach” by engaging with a range of groups around the world and “you can’t do that from Washington DC”, where the fund is based at the World Bank’s headquarters.
He added that travel was necessary to persuade governments to give more money to the fund. But, he promised, “we will be extremely sensitive in making sure that we don’t over-travel”.
How can governments tackle loss and damage at the national level?
The board members are not employed by the fund, which means they are not bound by the World Bank’s rules and can set their own travel policy. The board decided that developed-country governments will pay for their own representatives to travel to meetings while the fund will pay for developing-country board members, their alternate member and one adviser each.
They decided to copy the policy of the United Nations and the Green Climate Fund, which is that flights should be economy class unless they are nine hours or longer, when personnel can chose business class but are “encouraged to voluntarily downgrade”.
This policy was resisted by the US and Denmark, who wanted more economy travel to reduce spending and emissions. The US’s Rebecca Lawlor said that flying business class produces three times as much greenhouse gas as economy class, while Denmark’s Fugl said officials’ mode of travel is “something there is a lot of scrutiny about”.
But the Philippines’ board member Mark Dennis Y.C. Joven – whose country is the board’s legal host – questioned why the fund’s developing-country board members should follow a different travel policy from the fund’s staff. He asked if that would cause “administrative inefficiencies and delays” and “raise the issue of unfair treatment or discrimination”.
The fund plans to spend $261,000 next year, mainly on getting its developing-country board members, alternates and advisers to a board meeting in Barbados. Several developed-country board members called for more virtual meetings, but developing-country members largely opposed this, citing problems with internet connectivity and anti-social hours.
Late payments
Diong’s proposal to hire a deputy executive director early next year was also questioned. Board members Sudan and Honduras asked for more justification for the position, while the Democratic Republic of Congo’s member said the board should not micromanage.
Diong said his deputy would focus on operations, advocacy and communications which would free up Diong to work on raising money, particularly pressuring wealthy nations to convert their pledges into actual financial transfers.
While rich nations have promised $749m to the fund – most if it a year ago at COP28 – just $69m has landed in its coffers to date, with the World Bank expecting this to rise to $150m by the end of the year. The UAE, UK, France and Italy between them owe over $350m.
In Baku last month, COP29 president Mukhtar Babayev pushed governments to pay up. “All countries that have pledged money must complete their contribution agreements,” he said. On top of that, “we need more pledges so we can meet the urgent needs of climate change victims,” he added.
(Reporting by Joe Lo; editing by Megan Rowling)
The post New loss and damage fund boss urged to keep costs down appeared first on Climate Home News.
Climate Change
Why the ICJ’s advisory opinion on climate change took a backseat at COP30
With the International Court of Justice’s landmark advisory opinion on climate change hot off the press this July, hopes were high it could be used as a diplomatic lever for stronger climate action at COP30 in Brazil. But it proved a difficult tool to wield in a tense atmosphere.
The advisory opinion (AO) from the world’s top court – which determined that all states have obligations to protect the climate system from significant harm – has already been woven into new climate litigation and existing legal cases, and judges are starting to reference it in their rulings.
The Mexican community of El Bosque in Tabasco even managed to use it as leverage in recent negotiations with the central government over its latest national climate plan (NDC).
Yet, while some countries wanted the ICJ’s non-binding conclusions to feature in the main political decision approved at November’s climate COP in the Amazon city of Belém, the lack of a coordinated strategic push meant that did not happen, legal experts said.
Monaco, Mexico, the Alliance of Small Island States (AOSIS) and the group of Least Developed Countries (LDCs) all called for the ICJ’s decision – and two other climate advisory opinions from the Inter-American Court of Human Rights and the International Tribunal on the Law of the Sea – to be recognised during various COP30 presidency consultations.
But Jennifer Bansard, the Earth Negotiations Bulletin team leader, told journalists at COP30 that these requests were “at very generic levels” and did not go into the courts’ actionable findings.
“Deep, deep, deep red line”
The closest the ICJ advisory opinion came to being mentioned in a formal text was during a review of the Warsaw International Mechanism for Loss and Damage (WIM). This is key as experts believe the decision has particularly significant implications for the new loss and damage fund.
During these discussions, the Independent Alliance of Latin American and Caribbean Nations (AILAC) said the AO provides “an informed legal foundation” for advancing work on loss and damage. They pointed to “the need for comprehensive assessment and health protection” for vulnerable groups and “forms of reparation” This was supported by Vanuatu, which led the diplomatic work resulting in the ICJ opinion.
But Saudi Arabia, representing the Arab Group, responded that the ICJ’s final outcome is “non-binding” and “does not represent parties’ views” even though it participated in the process. Negotiations, it added, are a “party-driven process based on consensus, and not litigation”.
According to a source in the room, the Arab Group described the inclusion of the ICJ AO anywhere in the WIM document as a “deep, deep, deep red line”. “If you insist on discussing it, we might as well just suspend this session to not waste each other’s time,” said Saudi Arabia’s negotiator. The AO is not mentioned in the final agreed WIM text.
“We are still here” – COP30 tests resolve to keep fighting climate crisis
Harjeet Singh, founding director of the Satat Sampada Climate Foundation and strategic advisor to the Fossil Fuel Non-Proliferation Treaty Initiative, said the group was particularly concerned about the ICJ’s reference to the status of a state as developed or developing as “not static”.
“They feared that formally recognising the opinion would open the door to limitless legal liability for fossil fuel production,” he explained.
Left out of the COP30 cover decision
In addition, the AO’s recognition of a “just and fast transition in line with best available science” was mentioned by Fiji, for the Alliance of Small Island States (AOSIS), at an inaugural meeting on the Just Transition Work Programme. AILAC, Egypt and the UK also raised it during just transition negotiations, while Malawi used it to try to frame transition finance as a legal necessity.
Some states had expected the cover decision to recognise the AO in some form, but text drawn up by Brazil’s COP presidency did not include relevant wording.
The lack of references came despite the fact that the UN asked the ICJ for the advisory opinion unanimously and 96 countries spoke at the hearings.
Data visualisation developed by law professor Margaret Young and designers Dan Parker and Stanislav Roudavski.
Singh said the COP30 battle lines were drawn so sharply on the ICJ opinion because it validates the claims of vulnerable countries for climate justice, while historical and large polluters wanted “to avoid acknowledging any legal framework that implies liability”.
But, he added, while pushing back strongly against it, developed countries “neither championed nor explicitly opposed it in open plenary to avoid negative optics”.
The ICJ’s recognition that COP decisions may have legal effects could also make negotiators more wary of what they agree to.
In the closing COP30 plenary, Palau for AOSIS noted the ICJ’s clear assertion of 1.5C as the legal temperature limit. Yet the final Mutirao decision explicitly reiterates the Paris Agreement’s language of “pursuing efforts” to reach that level, while retaining the original goal of “well below 2°C”.
No coordinated push to champion the AO
Harj Narulla, a barrister specialising in climate litigation and counsel for the Solomon Islands, argued the COP30 decision “undermined” the ICJ’s conclusions. But barring a few nations like Saudi Arabia, he saw the overall outcome as a “failure of capacity and coordination, rather than a principled opposition to using the AO”.
Insiders said government negotiating teams remain too separate from their legal teams, and the former were not properly briefed on how the AO could be used in practice.
The leadership expected from climate-vulnerable countries, particularly the island nations that had advocated for the AO in the first place, also seems to have been absent. A briefing by Ed King and Lindsey Smith, who work on international climate strategy for the Global Strategic Communications Council, described AOSIS’s showing at COP30 in particular as “insipid”.
EU alliance with climate-vulnerable nations frays over finance trade-off
Ralph Regenvanu, minister of climate change of Vanuatu and a key architect of the AO campaign, mentioned it several times in public, including at Cambodia’s announcement that it would formally support a fossil fuel non-proliferation treaty. But his focus seemed to be on pursuing a new UN resolution recognising the ICJ’s findings.
Neither AOSIS nor Regenvanu responded to requests for comment.
Influencing the wider narrative
Nonetheless, Mohamed Adow, director of Power Shift Africa who has followed the climate talks for many years, believes the AO is “starting to influence the wider narrative around responsibility and liability”.
“Though it did not make the ‘waves’ in the formal text that many hoped for, it was clearly the ‘undercurrent’ beneath many streams of negotiation,” agreed Singh.
Nikki Reisch, climate and energy programme director at the Center for International Environmental Law, an organisation that supports the youth activists who sparked the AO process, said the opinion also supports “the need to reform the UNFCCC to make it fit for purpose”. That includes preventing fossil fuel industry influence and allowing majority voting so that a handful of countries cannot block climate action.
Eyes on Colombia fossil fuel transition conference
In 2026, the opinion may start to play a stronger role on the global stage, including at an international conference on a just transition away from fossil fuels co-hosted by Colombia and The Netherlands next April.
The Fossil Fuel Treaty initiative says that gathering will align with the AO, “which confirmed that states have a legal obligation to protect the climate, including by addressing fossil fuel production, licensing and subsidies”.
Colombia seeks to speed up a “just” fossil fuel phase-out with first global conference
Experts, meanwhile, expect more domestic lawsuits underpinned by the advisory opinion aimed at pushing countries to raise their ambition on cutting emissions and say inter-state litigation cannot be ruled out.
“COP30 in Belém is by no means the last word on the ICJ AO or the climate duties it confirms,” Reisch said.
A version of this article was originally published in The Wave.
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Why the ICJ’s advisory opinion on climate change took a backseat at COP30
Climate Change
China risks emissions rebound amid policy shifts, experts warn
After holding stable for two years, China’s carbon emissions may climb back up as the construction of new fossil fuel power plants accelerates and recent policy changes cloud the outlook for clean energy, a new report warned.
The world’s biggest carbon polluter is expected to keep total emissions flat in 2025 despite rising energy demand – a sign that clean power may, for the first time, fully offset the growth in electricity consumption, the analysis by the Centre for Research on Energy and Clean Air (CREA) showed.
But the Finland-based research group cautioned that a “concerning” policy environment for the next few years increased the risk of an emissions rebound. It added that China was also set to miss its key target for cutting carbon intensity – CO2 emissions per unit of gross domestic product – this year, meaning steeper reductions will be needed to hit its headline 2030 climate goal of slashing carbon intensity by 65%.
Belinda Schäpe, China policy analyst at CREA, said it was unclear how strongly committed China remained to its targets, despite leaders’ assertions that the government always makes good on its climate promises.
“All of this uncertainty raises a lot of questions around where emissions are going,” Schäpe told Climate Home News. “At the moment, it’s very finely balanced. They are just about flat but could well go up or down again based on the decisions that the government will make.”
New pricing model for renewables
Record solar energy installations and strong growth in wind power capacity have increased the share of non-fossil fuel electricity this year, with emissions from the power sector set to decline for the first time since 2016, the report said. But that progress has been partially countered by the rapidly growing use of coal for the production of plastics and other chemical products, meaning overall emissions are expected to remain stable.
At the same time, experts have warned that China’s new pricing system for solar and wind projects risks slowing the clean energy boom. Under the new policy introduced last June, developers of new solar and wind power plants need to secure contracts with provincial authorities through competitive auctions, instead of being guaranteed a fixed price.
Schäpe said prices had been “very, very low” in some of the auctions so far. “Of course, that’s great for consumers, but it’s really bad for project developers because they don’t want to go ahead and invest in new projects facing the risk of no returns,” she said.
Earlier this year, the International Energy Agency (IEA) cut its forecast for China’s 2025-2030 renewables growth by 5% due to the changes in the pricing model. The watchdog’s head Fatih Birol said the profitability of renewables projects – especially solar and wind – was expected to decline between 10% and 15% with the new policy.
Coal power boom continues
Coal power plants, on the other hand, are protected from this market-based system, relying instead on long-term power purchase agreements that lock in prices, Schäpe said, describing it as “unfair competition”.
China’s rapidly expanding coal power fleet is adding to the concerns. In 2025, the country has added the largest amount of coal-fired capacity since 2015, while progress on retiring older plants remains very slow, CREA’s report highlighted.
This runs contrary to a pledge made by President Xi Jinping in 2021 to “strictly control” new coal power projects. That commitment was omitted from Beijing’s updated national climate plan (NDC) submitted in late October ahead of COP30.
In its new NDC, China set an absolute emission reduction target for the first time, committing to cutting its greenhouse gas emissions by between 7% and 10% by 2035 from unspecified “peak levels”.
Focus on next five-year plan
Schäpe said that the absence of a base year could create an incentive to raise emissions and “storm the peak” – pushing them as high as possible to make future reduction targets easier to meet.
She said this put the focus on China’s 2030 carbon intensity target, adding that if Beijing was still serious about meeting it, emissions would need to peak “around now”.
China targeted an 18% reduction between 2021 and 2025, but it is projected to achieve about 12% by the end of this year, CREA’s report said. If that is confirmed, China will then need to significantly ramp up efforts to cut carbon intensity in the next five years to achieve its headline climate commitment for 2030.
Analysts expect China’s new five-year plan – the blueprint for its economic development – to provide more clarity on the country’s energy policies next year.
“We will see how the government is going to balance these two opposing forces: the outgoing coal industry interests and the new cleantech sectors that are meant to become the driver of future growth,” Schäpe said.
The post China risks emissions rebound amid policy shifts, experts warn appeared first on Climate Home News.
China risks emissions rebound amid policy shifts, experts warn
Climate Change
Proposal for global minerals deal meets opposition as China looks away
Saudi Arabia, Russia and Iran are among countries opposed to discussing options for agreeing on global norms to protect people and the planet from the impacts of mining, processing and recycling minerals needed for the clean energy transition, documents seen by Climate Home News show.
Environment officials gathered in Nairobi, Kenya, ahead of the UN Environment Assembly (UNEA) next week are discussing a resolution by Colombia and Oman that aims to make mineral supply chains more transparent and sustainable at a time when growing demand is spurring resource-rich countries to court investment and boost production.
They have proposed the creation of an expert group to identify a range of binding and non-binding international instruments “for coordinated global action on the environmentally sound management of minerals and metals” from mining to recycling. The group would also look at how to handle mining waste and provide guidelines on recovering minerals from tailings responsibly.
Those instruments could range from a global minerals treaty to a non-binding declaration or set of standards on best practice. The resolution is co-sponsored by Armenia, Ecuador and Zambia.
Colombia has previously called for an international minerals treaty to define rules and standards that would make mineral value chains more transparent and accountable.
China, US on the sidelines for now
But Iran, Russia and Saudi Arabia, which is emerging as a major player in mineral supply chains, oppose launching a process that could lead to an international agreement on the issue, according to several sources and documents shared with Climate Home News.
Countries will vote on the proposal next week, during the seventh session of UNEA, the world’s top decision-making body for environmental matters.
China, which dominates the processing of 19 of 20 minerals deemed critical for the global economy, has so far stayed quiet about the proposal, but analysts said Beijing was unlikely to support any supranational initiative to govern mineral supply chains.
China’s priority is “to remain sovereign throughout the process of how these minerals are produced and traded” and to promote cooperation “on its own terms”, said Christian-Géraud Neema, an expert on Chinese engagement in Africa’s transition minerals sector and the Africa editor of the China-Global South Project.
The US, which has been trying to counter China’s critical minerals clout, is not attending UNEA, while the EU – another major global market – is understood to broadly support the proposal.
A spokesperson for the US State Department said: “Our team in Nairobi is focused on the US-Kenya relationship and delivering results for the American people, rather than litigating endless woke climate change theater.” The European Commission did not immediately respond to a request for comment.
Several other countries have raised objections. Chile, a top producer of copper and lithium, wants to narrow the focus of the resolution to voluntary cooperation on illegal mining.
In Africa, most countries back the Colombia-Oman proposal, but Uganda and Egypt oppose it, said Nsama Chikwanka, director of Publish What You Pay Zambia, an NGO focused on resource sovereignty.
“Race to the bottom”
Campaigners say countries should unite at UNEA to pave the way for talks on the issue, with some saying binding rules should be the eventual target.
“The investments that are coming to countries like Zambia are from multinational enterprises and national laws are inadequate to ensure that robust standards are applied. So we need something that is internationally binding,” Chikwanka said.
This comes after opposition from China and Russia thwarted a push by mineral-rich developing countries as well as the UK, the European Union and Australia to reflect the environmental and social risks associated with mining-related activities in the outcome of COP30.
“What we are seeing at the moment is a huge race to the bottom of environmental standards at the same time as the impacts of mining are already immense,” said Johanna Sydow, a resource policy expert who heads the international environmental policy division of Germany’s Heinrich-Böll Foundation.
“It is the chance now to create a long-lasting space for governments to work together on this issue,” she told Climate Home News.
The race to extract minerals like lithium, nickel, copper, cobalt and rare earths needed to manufacture batteries, solar panels, wind turbines and other advanced digital and military technologies has led to growing cases of human rights violations, social conflict and environmental harms around the world.
In Indonesia, nickel mining is fuelling deforestation, in Zambia, copper mining has led to catastrophic leaks of mining waste and in Latin America, Indigenous Peoples say the rush to extract lithium for batteries is trampling their rights.
In 2024 alone, the Business and Human Rights Resource Centre recorded 156 allegations of human rights abuses linked to the mining of energy transition minerals.
Counter-proposals favour non-binding measures
Opposed to global discussions about possible binding tools to govern mineral supply chains, Saudi Arabia and Iran have instead suggested the creation of a technical platform that could review the impacts of mineral extraction in developing countries, explore options for support to address them, and advance voluntary cooperation on environmentally-sound practices.
Digging beyond oil: Saudi Arabia bids to become a hub for energy transition minerals
Saudi Arabia is already cooperating with mineral-rich nations on its own terms by investing billions of dollars in transition minerals abroad in a bid to become a global mineral processing hub that could become a counterweight to China’s dominance.
China, meanwhile, threw its weight behind a G20 agreement on a voluntary and non-binding Critical Minerals Framework intended to ensure that mineral resources “become a driver of prosperity and sustainable development”.
At the G20 leaders’ summit in South Africa last month, which was snubbed by the US, China also launched an economic and trade initiative on minerals, aiming to secure access to minerals in exchange for cooperation on technology, capacity-building and financing.
At least 19 countries, including Cambodia, Nigeria, Myanmar and Zimbabwe, alongside the UN Industrial Development Organisation, have reportedly joined the initiative.
For Neema, of the China-Global South Project, this is an explicit attempt to counter resource diplomacy by the US, which is offering developing countries security and military support in exchange for minerals.
“Producing countries in the Global South are more likely to be attracted by this approach because they know that the likelihood of Chinese companies and banks showing up is quite high,” he said.
The post Proposal for global minerals deal meets opposition as China looks away appeared first on Climate Home News.
Proposal for global minerals deal meets opposition as China looks away
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