Last month, the negotiations fell apart due to significant disagreements between developed and developing nations. Tensions rose to the extent that Egypt’s representative warned of potential legal consequences for the United States and other major polluters if they did not commit to contributing funds to the cause.

The United States has urged the committee to consider making contributions voluntary, stating that wealthy nations are not required by the Paris Agreement to cover costs associated with loss and damage. The U.S. has historically faced resistance from members of Congress regarding climate funding.

In 2009, wealthy nations made a promise to provide $100 billion each year by 2020 to aid developing countries in recovering from the effects of climate change. However, this commitment has yet to be fulfilled. Additionally, developing countries are pushing for a separate fund specifically for loss and damage to also receive $100 billion annually by 2030.

Currently, only a few small nations have committed funds to the potential loss and damage fund. The United States is not included in this group.

The suggestions from the committee will be brought to country representatives for consideration at COP28, with the objective of implementing the fund as soon as feasible.