Nations attending the UN Climate Change Conference (COP31) in Nairobi have agreed to establish a dedicated $100 billion annual Loss and Damage Fund for African countries bearing the brunt of climate change despite contributing less than 4% of global emissions.
The agreement, brokered after marathon overnight negotiations, commits the US, EU, China, and other major emitters to annual contributions based on their cumulative historical emissions. The fund will be managed by the African Development Bank and will begin disbursements from 2026.
Ghana's Environment Minister Dr. Kwaku Afriyie, who chaired the key working group, said the deal was "justice delayed but not denied." Ghana has experienced increasingly severe flooding, droughts in the north, and coastal erosion that has swallowed entire communities.
However, climate advocates cautioned that $100 billion falls far short of the estimated $400 billion annual need. Oxfam's Africa Director called the deal "a down payment on a much larger debt" and vowed to hold rich nations accountable for timely delivery.
