NEW ZEALAND (Commonwealth Union)_ New Zealand has joined a small group of countries in donating money to developing countries to compensate for the loss and damage caused by climate change. Climate Change Minister James Shaw and Foreign Affairs Minister Nanaia Mahuta have stated that $20 million will be set aside from an emissions trading programme fund.
All-night talks were required to place the matter on the official agenda for the first time at this year’s UN climate summit in Egypt.
Pacific countries and other poor countries have been demanding for compensation for the emissions created by affluent nations over hundreds of years, as well as the economic impact on developing countries. Wealthy nations, notably the United States and the European Union, have repeatedly opposed, fearing they would be liable for billions of euros in recurring reparations.
Some estimates put the total harm at half a trillion US dollars in only the last decade. According to Mahuta, the specific funding for loss and damage places Aotearoa New Zealand at the forefront of wealthy countries. “It clearly indicates our support for Pacific interests.” Climate change, she warned, threatens not only the foundation of Pacific peoples’ lives, but also their culture, language, and mental and physical well-being.
Shaw stated that relatively prosperous countries such as New Zealand owed it to the countries most vulnerable to climate change. “It’s a bit of a down payment,” the Kiwi Climate Change Minister said of the $20 million commitment, which was planned to coincide with COP27 in order to make progress in these talks.
“The debate over whether it is compensation or historical culpability for emissions… has actually been the impediment to progress. We want to see progress, and the Pacific Islands want to see progress, so we’re saying let’s get started and hope it injects some good faith into negotiations and results in some movement.”
Germany, Belgium, Denmark, and Scotland are the only other countries to contribute to loss and damage, with the contributions considered as symbolic rather than financial in nature.
The cash generated by the emissions trading scheme is used to fund New Zealand. At COP27, developing nations are anticipated to press for a centralised mechanism to allocate loss and damage monies. “While New Zealand is not opposed to this, we also encourage a variety of funding options in order to make the best use of our contribution,” Minsiter Mahuta said. “We will collaborate with our partners, particularly Pacific governments, to support sectors identified as priorities.”
