Climate negotiators on Friday were mulling a European Union proposal aimed at resolving an impasse over financing for countries hit by climate-fuelled disasters and pushing the U.N. climate summit in Egypt closer to a final deal.

Iran PressEurope: The EU proposal agreed to set up a special fund for covering loss and damage in the most vulnerable countries - but funded from a "broad donor base."

"What we would propose is to establish a loss and damage response fund for the most vulnerable countries," EU climate policy chief Frans Timmermans told the COP27 summit.

The loss and damage issue has dominated this year's summit, with more than 130 developing countries demanding that the meeting deliver a deal on a new fund to help them cope with the irreparable damage of floods, drought and other climate impacts.

The United States and European Union had previously resisted the idea, fearing it could open the door to spiralling liabilities for countries whose historical emissions fuelled climate change.

The climate minister for the Maldives, which faces inundation from climate-driven sea-level rise, said the new EU offer had buoyed hopes among climate-vulnerable nations for a deal.

"On loss and damage, we welcome the interventions and openness and the will to forge an agreement," Shauna Aminath said. "We're very close to an agreement, and let's engage with one another and make this happen."

The EU attached conditions to its offer - including that countries agree to step up their ambition to cut planet-warming emissions. The 27-country EU has among the most ambitious climate targets of major greenhouse gas emitters, and has urged China to upgrade its own.

About the EU proposal, Chinese foreign ministry spokesperson Mao Ning said developed countries should fulfil their obligation to provide finance to developing countries, and all countries should translate their climate targets into "concrete actions".

"The Chinese side hopes that COP27 will focus on the full and accurate implementation of the principles and objectives of the Paris Agreement," Reuters cited Mao as saying.


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