News Image

By an Economist, Southern California

As of November of 2022, “rich” countries will now compensate “poor” countries for the burden being suffered by climate change. Since the industrial revolution starting in the 1800s, petroleum-based industries in the Western World have been the main contributor of greenhouse gasses. We now know that past carbon emissions continue to effect climate change for decades to centuries.

In contrast, undeveloped countries in the past 200 years have contributed little to greenhouse gas emissions that caused global warming. Yet a big portion of global warming effects lay on the shoulders of the poor developing countries. Developing countries’ economies heavily rely on agriculture. Events of global warming such as drought, flood, and heatwaves are a big hit to poor countries’ agriculture resulting in billions of dollars in losses. These devastating economic consequences of global warming have only deepened the economic distress of already poor populations in developing countries.

There is no doubt that rich and developed countries have to come forward to take responsibility for their actions. In the recent COP27 climate summit participants from developed and poor countries reached an agreement to establish a fund called “loss and damage funds”. Funds to this initiation will be contributed by developed countries to assist poor countries to restore and rebuild their economy. This agreement is the first step in the global collaboration between developed and poor countries to stop carbon emissions. It is especially important that poor countries will apply clean energy technology in their growing economy because most of the population on the planet reside in poor countries that still developing their economy. China alone has about 3 billion in population and India has about 1.5 billion in population. COP 27 agreement initiation is long overdue and more actions of global effort are urgently needed to be established in the future.