Funding drama threatens UN climate summit

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Oct 30, 2023 View in browser   By Minho Kim Presented by Chevron This aerial view shows a flooded residential area after heavy monsoon rains in Pakistan's Balochistan province on Aug. 29, 2022. | Fida Hussain/AFP via Getty Images Negotiations over an international fund for climate damages are at risk of falling apart, a development that would pose a major embarrassment for the upcoming United Nations climate summit. The fund is supposed to help developing countries — which have contributed the least pollution — grapple with the irreversible impacts of climate change like rising seas and extreme weather. But talks to set up the “loss and damage” fund have become mired in mistrust and acrimony, with countries unable to agree even on the fundamentals, such as who pays, who benefits and how it should be designed, write Zia Weise, Sara Schonhardt and Karl Mathiesen. If countries don’t find a compromise in the coming days, “it will break COP,” warned Avinash Persaud, the lead negotiator for Barbados, after negotiations stalled earlier this month. “I feel that not enough people are sufficiently worried about that.” Talks will resume Friday in a last-ditch effort to nail down key details for the fund before the COP28 summit begins Nov. 30 in Dubai, United Arab Emirates. If they fail, it raises questions about whether nations can resolve the even thornier questions awaiting them at the summit, such as vulnerable countries’ call for a commitment to phase out fossil fuels. And it would undermine whatever trust lingers from last year’s COP, when world leaders hailed a “historic” agreement to work together to create the fund. Playing with fire At least one negotiator has already brought up an explosive alternative: holding big polluters like the U.S. and European Union liable for their years of planet-warming emissions. “If this fund ends up as an empty shell, this could revive the calls for liability, historical responsibility and compensation,” said Mohamed Nasr, chief negotiator for the U.N. talks’ outgoing Egyptian presidency. The U.S. has called that a nonstarter — and if ever proposed, it could cause the country to ditch loss and damage negotiations. But the Biden administration also faces a major political obstacle to pledging any money at all for the fund: congressional approval, particularly with Republicans in control of the House. Advocates for developing countries worry that a loss and damage fund will depend on rich nations’ goodwill, unless a language of commitment is woven into it. They noted that wealthy countries did not keep a preexisting promise to fund $100 billion a year in climate finance by 2020, which has undermined poorer nations’ trust in climate talks. “One of the ways in which developed countries can change the dynamic of the negotiations is by putting some money on the table,” Persaud said. “They need to come up with a number and say, if the fund is agreed, we will put in $X hundred million.”   It's Monday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Minho Kim. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to mkim@eenews.net.   A message from Chevron: Chevron knows methane management is critical for a lower carbon future. We’re striving to lead in methane management with innovative practices, partnerships, and new technologies. These are a few ways we’re aiming to keep methane in the pipe.   Listen to today’s POLITICO Energy podcast Today in POLITICO Energy’s podcast: Kelsey Tamborrino breaks down the latest energy legislation in the House and what it means for the upcoming scramble to keep Congress funded and avert a government shutdown.   GET READY FOR POLITICO’S DEFENSE SUMMIT ON 11/14: Russia’s war on Ukraine … China’s threats to Taiwan … a war in Gaza. The U.S. is under increasing pressure to deter, defend and fight in more ways — but not everyone agrees how. Join POLITICO's 3rd Annual Defense Summit on November 14 for exclusive interviews and expert discussions on global security and the U.S.'s race to bolster alliances and stay ahead of adversaries. Explore critical topics, including international conflicts, advanced technology, spending priorities and political dynamics shaping global defense strategies. Don’t miss these timely and important discussions. REGISTER HERE.     Power Centers President Joe Biden delivers remarks at the White House on Aug. 16 to mark the first anniversary of the Inflation Reduction Act. | Win McNamee/Getty Images Talking up climate achievements in swing states President Joe Biden helped pass a monumental climate law aimed at reducing emissions and building up domestic manufacturing, but it did not help his poll numbers, writes Scott Waldman. That’s why Climate Power, a liberal advocacy group, is spending $80 million to highlight the Inflation Reduction Act and its accomplishments. Part of the multimillion-dollar campaign will target seven swing states such as Arizona, Georgia, Pennsylvania and Michigan. Inside a house party hosted by climate activists The disruptive protesters of Climate Defiance hosted a fundraiser last week that included high-profile politicians, donors and Generation Z and millennial climate activists, writes Robin Bravender. The group frequently disrupts Biden administration officials during interviews and conferences, calling for more action on climate change. Last week's gathering — described by the group's founder as an "epic rager" — aimed to help pay for things like travel and videographers to document their interruptions. AI threats to energy infrastructure Biden issued an executive order today directing the Energy Department to address threats from artificial intelligence on the nation’s energy grids, writes Brian Dabbs. But experts warn that executive action is not enough. They are calling for new legislation that could protect Americans from data breaches. Most energy products with artificial intelligence stores vast personal data — including when homeowners turn lights on and what electronics are being charged — to manage and deliver power more efficiently.   A message from Chevron:   In Other News Pioneering climate scientist dies: Saleemul Huq, who was director of Bangladesh’s International Centre for Climate Change and Development, died Saturday at 71. He emphasized the need to help poor nations adapt to climate change. More oil: London-based BP is forming joint ventures with shale gas producers in Louisiana and Texas to expand its production and cut costs.   A message from Chevron: By 2028, our upstream methane intensity target is set to be 53% below the 2016 baseline. To help us get there, we’ve trialed over 13 advanced methane technologies including satellites, planes, drones, and fixed sensors to help reduce methane emissions intensity. In the Permian, we have deployed real-time autonomous optimizers that continuously monitor facilities and well conditions to help prevent flaring, venting and well shutdowns. Developing new solutions to provide energy that’s affordable, reliable and ever-cleaner, that’s energy in progress.   Subscriber Zone A showcase of some of our best subscriber content. A sign marking the Dakota Access pipeline is seen north of Cannonball, N.D., and the Standing Rock reservation in 2021. | Matthew Brown/AP If the Dakota Access pipeline had not been built, local pollution would have increased near rail lines, according to a new study. Exxon Mobil and Chevron saw their profits rise in the third quarter of 2023 amid plans to ramp up oil and gas production, sparking renewed criticism from some Democrats and environmental groups that the companies are shirking their responsibility to cut planet-warming emissions. The United Auto Workers' tentative agreement with Ford has a “pathway” to include the future workers at electric vehicle plants, said UAW President Shawn Fain. That's it for today, folks! Thanks for reading.   SUBSCRIBE TO CALIFORNIA CLIMATE: Climate change isn’t just about the weather. It's also about how we do business and create new policies, especially in California. So we have something cool for you: A brand-new California Climate newsletter. It's not just climate or science chat, it's your daily cheat sheet to understanding how the legislative landscape around climate change is shaking up industries across the Golden State. Subscribe now to California Climate to keep up with the changes.       Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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