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Richer Countries Are Starting to Pay Poorer Ones for Climate Change Damages

Summary

At COP29 in Baku, countries are advancing efforts to fund "loss and damage" payments, compensating low-income nations disproportionately affected by climate change. Cyclone Freddy, which displaced 650,000 people in Malawi and caused over 1,000 deaths in 2023, exemplifies the need. Malawi farmer Christopher Bingala received $750 to rebuild his home, part of Scotland’s early funding initiative. So far, $720 million has been pledged globally, but experts warn this is insufficient against rising costs, predicted to reach $250 billion annually by 2030. The fund, now housed at the World Bank, aims to support disaster recovery, relocations, and ecosystem restoration, addressing the ongoing financial and humanitarian crises driven by extreme climate events.

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