Climate disaster fund to start paying out in 2025

illuminem summarizes for you the essential news of the day. Read the full piece on Deutsche Welle or enjoy below:

🗞️ Driving the news: A new UN climate fund to address loss and damage will begin payouts in 2025, offering financial relief to vulnerable nations experiencing climate disasters
• Established last year at COP28, the fund currently stands at $722 million but aims for billions in contributions

🔭 The context: Extreme weather, such as East Africa’s floods and droughts, increasingly impacts nations with minimal carbon emissions
• Although some developed countries have contributed, disputes remain over how much wealthier nations, including Gulf states and China, should contribute

🌍 Why it matters for the planet: By funding climate disaster relief, the fund seeks to support countries with fewer resources to rebuild after severe climate events, addressing an urgent need as climate-related losses in developing nations may reach over $500 billion annually by 2030

⏭️ What's next: The fund’s transitional committee will present its recommendations at COP29 to establish sustained contributions from both developed and developing countries, with calls for additional revenue from levies on fossil fuel extraction and other sources

💬 One quote: “The fund… doesn’t come close to righting the wrong inflicted on the vulnerable,” - UN Secretary-General Antonio Guterres, stressing the insufficiency of current pledges

📈 One stat: The fund’s $722 million is less than a quarter of damages from a single climate event, such as Pakistan’s $30 billion loss from 2022 flooding

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