The EU has made a proposal of a new fund that could aid developing nations as they cope with climate change.

The final days of COP27 have been overshadowed by the fear that talks could end without any real progress over the question of money.

Nations that have recently seen dramatic climate related disasters such as Pakistan have called on richer nations to compensate them for the historic release of carbon, seeking ‘loss and damage’ funding.

Richer nations, however, feel that this could lead to opened ended reparations, and a blank cheque. The US, in particular, is not too keen on such a concept.

The first draft of the COP27 Cover note dodged the issue, Yeb Saño, Greenpeace International’s COP27 head of delegation, declaring: ““We came to Sharm el-Sheikh to demand real action on meeting and exceeding climate finance and adaptation commitments, a phase out of all fossil fuels and for rich countries to pay for the loss and damage done to the most vulnerable communities within developing countries by agreeing a Loss and Damage Finance Fund. None of that is on offer in this draft. Climate Justice will not be served if this sets the bar for a COP27 outcome.”

But now, in the last hours, the EU has proposed a fund that would be funded by a "broad donor base", including China, and this has raised hope that a deal might just get done.

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