The creation of a new fund to aid vulnerable countries hit by climate disasters has stumbled over EU and US ‘red lines’, with the US insisting on housing the proposed fund in the World Bank and the EU backing that proposal.

Developing countries perceive the World Bank to be dominated by the developed countries and considered that his would mean that they have less of a voice at the table. The deadlock leaves the meeting in Egypt having resolved a few smaller details, but no closer to the establishment of a fund.

The fund, often called a loss and damage fund, and agreed in principle at COP27, will now most likely be discussed again next month at COP28.

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