What We’re Watching: Climate comp fund, Malaysian coalition building

Egypt's Foreign Minister Samih Zhukri (l) speaks during the closing ceremony at the COP27 climate summit in Sharm el-Sheikh.
Egypt's Foreign Minister Samih Zhukri (l) speaks during the closing ceremony at the COP27 climate summit in Sharm el-Sheikh.
Christophe Gateau/DPA via Reuters

COP27 delivers on reparations but fails on fossil fuels

Two days behind schedule, the COP27 climate summit in Sharm el-Sheikh, Egypt, finally wrapped up with a historic agreement on Sunday. Wealthy countries will pay poor nations for the economic damage caused by climate change. The so-called "loss and damage fund" will compensate the developing world for impacts like droughts and flooding, which rich nations led by the US had resisted for 30 years. But so far it's only a political statement of intentions with no financial commitment, so it'll be up to future COPs to work out the details. What's more, climate activists' joy over the much-awaited reparations deal was overshadowed by a lack of progress in cutting fossil fuels. Efforts to include stronger language on phasing out oil and natural gas on top of coal were rebuffed by top fossil fuel producers as well as by major guzzlers in the developing world who won't jeopardize their economic growth to embrace renewables. In other words, a victory for climate justice but a painful defeat for clean energy at a COP where expectations were low.

Get more COP27 insights from Eurasia Group analyst Franck Gbaguidi on our Instagram and YouTube channels.

Nationalist bloc might take power in Malaysia

As expected, Malaysia's general election on Saturday delivered a hung parliament without a clear winner. But there were plenty of losers. The opposition multiethnic alliance led by former PM Anwar Ibrahim won the most seats (80) but fell far short of a majority in the 222-member parliament, while the once-dominant UMNO party got its worst result ever with only 30. And perhaps the biggest upset was 97-year-old ex-PM Mahathir Mohamad losing his seat — his first election defeat in 53 years. Meanwhile, a Malay-first alliance captained by Muhyiddin Yassin, yet another former PM, overperformed with 73 seats. Muhyiddin is now favored to return to the premiership after clinching the support of two regional parties from Borneo and is wooing UMNO, but Anwar says he should have a go first. Who'll make the call? The current king under Malaysia’s unique rotating monarchy, who has the constitutional power to appoint the next PM and wants a name by Monday.

More from GZERO Media

President Donald Trump speaks to the media as he leaves the White House for a trip to Florida on April 3, 2025.
Andrew Leyden/NurPhoto via Reuters

Stocks have plummeted, layoffs have begun, and confusion has metastasized about the bizarre method the United States used to calculate its tariff formula. But Donald Trump says it’s “going very well."

African National Congress (ANC) members of parliament react after South African lawmakers passed the budget's fiscal framework in Cape Town, South Africa, April 2, 2025.
REUTERS/Esa Alexander

The second largest party in South Africa’s coalition, the business-friendly Democratic Alliance, launched a legal challenge on Thursday to block a 0.5% VAT increase in the country’s new budget, raising concerns that the fragile government could collapse.

The Israeli Air Force launched an airstrike on Thursday, targeting a building in the Mashrou Dummar area of Damascus. Israeli Defense Minister Yoav Gallant confirmed Israel's responsibility for the attack, which resulted in one fatality.
Rami Alsayed via Reuters Connect
A man leaves the U.S. headquarters of the social media company TikTok in Culver City, California, U.S. January 17, 2025.
REUTERS/David Swanson

Remember the TikTok ban? The new deadline President Donald Trump set for the app to find an American buyer or be banned from US app stores, midnight Saturday, is rapidly approaching.

National Security Advisor Mike Waltz looks on as he sits next to US Defense Secretary Pete Hegseth in the Oval Office on March 13, 2025.

REUTERS/Evelyn Hockstein

Someone needs to take National Security Advisor Michael Waltz’s phone out of his hand.

President Donald Trump holds a "Foreign Trade Barriers" document as he delivers remarks on tariffs in the Rose Garden at the White House on April 2, 2025.

REUTERS/Carlos Barria

Donald Trump’s much-anticipated “liberation day” tariff announcement on Wednesday is the biggest disruption to global trade in decades, so the political, diplomatic, and economic impacts will take time to become clear.

Elon Musk waves to the crowd as he exits the stage during a town hall on Sunday, March 30, 2025, at the KI Convention Center in Green Bay, Wis.

Tork Mason/USA TODAY NETWORK-Wisconsin via Reuters

Donald Trump is reportedly telling people that he and Elon Musk have agreed that Musk’s work in the US government will soon be done. Politico’s story broke just as Musk seems to have discovered the electoral limits of his charm.