China; other large economies must also pay for loss and damage: EU

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Subject : Environment

Context-

Supporting the demand first put forward by the small island countries, the European Union asserted that China must also be asked to contribute towards loss and damage finance, a new funding mechanism that is proposed to be set up to help poor countries hit by climate disasters.

EU’s stand-

China is one of the biggest economies on the planet, with a lot of financial strength.
In 1992, there was a reasoning behind this, which I can follow, but no longer in 2022.
EU’s position deepens the divide on the loss and damage finance.
India is not being mentioned by name but some small island states have said that India must also be asked to contribute.
The US also wants both India and China, and possibly other major economies, to contribute.
EU was open to a setting up a new facility, but a much better, and quicker, way to start helping the affected countries right away was to use the existing financial instruments.
The US, and other developed countries, also want existing instruments to be used for this purpose.

Concern over beneficiary of the climate finance-

There is also a big difference on who the beneficiaries of loss and damage finance would be.
Developing countries want every one of them to be able to access this money, but others have been insisting that only the most vulnerable and poor countries should benefit.
Another issue being keenly tracked is the Indian proposal for a decision calling for a phase-down (instead of phase out) of all fossil fuels (and not just coal).
The Indian proposal has won support from large number of developing countries and even EU, which uses large amount of oil and gas.
But the United States is not on board, and neither is China.