COP27 Opens... US Says "Companies Must Also Bear 'Loss and Damage' Burden"

Egypt's Foreign Minister Sameh Shoukry, who served as the President of the 27th United Nations Climate Change Conference of the Parties (COP27), is delivering a speech at the opening ceremony of COP27 on the 6th (local time).
Photo by AP Yonhap News

[Asia Economy Reporter Park Byung-hee] The U.S. government is expected to propose a plan at the 27th United Nations Climate Change Conference of the Parties (COP27) to utilize global private sector funds to assist developing countries in responding to climate change.

One of the main agendas at COP27, which opened on the 6th (local time) in Egypt, is to impose the burden of compensation for "Loss and damage" on private companies as well. Compensation for loss and damage refers to a fund supported by developed countries, the main culprits of greenhouse gas emissions, as a form of compensation to developing countries suffering unjust damage due to climate change.

According to a plan under review by John Kerry, the U.S. Special Presidential Envoy for Climate, and the U.S. government, governments or government agencies that reduce greenhouse gas emissions or increase the use of eco-friendly energy can acquire carbon emission permits and sell them to private companies that emit greenhouse gases. The revenue from selling carbon emission permits is planned to be used as funding for eco-friendly energy projects. An official explained that the U.S. government's plan envisions utilizing hundreds of billions of dollars in private capital to help developing countries transition to eco-friendly energy.

Special Envoy Kerry and the U.S. government hope to unveil this plan at the COP27 Climate Summit plenary session on the 7th and 8th. To this end, Kerry is currently striving to garner support from governments, companies, and climate change experts worldwide, according to foreign media. More than 110 heads of state, including U.S. President Joe Biden and U.K. Prime Minister Rishi Sunak, are expected to attend COP27.

However, there are criticisms that the U.S. government's plan still lacks detailed specifics. A source familiar with the discussions said the U.S. State Department plans to introduce a broad framework but that developing all the details will take more time.

The discussion on loss and damage was adopted as an official agenda item for the first time at this COP27. At COP26 held last year in Glasgow, U.K., the U.S. and the European Union (EU) rejected demands from developing countries to discuss loss and damage, but this year they accepted it. This is because the U.S. and EU suffered significant damage from heatwaves this year, raising awareness of the need for climate change response.

COP27 will continue until the 18th, and the host country, Egypt, expects about 40,000 participants, including delegations from approximately 200 countries, environmental and climate-related civic groups, businesspeople, and journalists.

This content was produced with the assistance of AI translation services.