Sharm el-Sheikh, Egypt, 19 November 2022 (dpa/MIA) – A UN climate conference in Egypt entered its final day on Saturday as delegates struggled to reach consensus on major issues related to curbing global warming. The two-week conference, known as COP27, had been due to conclude on Friday, but it was extended to Saturday in the hope of reaching a breakthrough. A thorny issue at the centre of the talks is the payment of reparations for damage caused by climate change in poorer countries. Delegates placed the issue, known as loss and damage funding, on the agenda for the first time this year. Developing countries have long pressed for the creation of a financial mechanism to address climate-induced harm in low-income countries, a demand resisted by rich nations for years. The European Union has signalled readiness for compromise on funding for vulnerable countries, but with strings attached. Firstly, the money must benefit the most vulnerable countries - a condition aimed at preventing China, a top global emitter, from benefiting from the payments. Moreover, climate damage reparations must be linked to deeper cuts in emissions. Egypt’s Foreign Minister Sameh Shoukry, the COP27 president,  acknowledged “equal dissatisfaction” on all sides and urged parties to “rise to the occasion” by showing flexibility. Shoukry said he had presented a draft text to the negotiating teams on the major issues of loss and damage funding, further cuts in emissions and adaptation to climate change. “As you might imagine, none of the groups could say that all of their interests were reflected," he said at a press briefing in Sharm el-Sheikh. "But a vast majority of the parties indicated to me that they considered the text as balanced and that they constitute a potential breakthrough that can lead to consensus,” he added. “The issue now rests with the will of the parties. It is the parties who must rise to the occasion and take upon themselves the responsibility of finding the areas of convergence and moving forward.” A new hurdle for negotiations emerged late Friday night when it was announced that US climate envoy John Kerry, a key participant, had tested positive for coronavirus. Kerry’s spokesperson Whitney Smith said he was fully vaccinated and experiencing only mild symptoms. “He is working with his negotiations team and foreign counterparts by phone to ensure a successful outcome of COP27,” Smith added. But, some analysts believe the conference has hit a bumpy road. “The situation is serious with a deadlock on an agreement for a loss and damage facility,” said Yeb Sano, Greenpeace Southeast Asia executive director. “​​Putting loss and damage on the agenda is an important recognition of climate reality and the profound impacts on many communities around the world, but that recognition needs to be backed by action,” he added in a press briefing in Egypt. Sano said if COP27 ended with a deal on loss and damage, “it will be a resounding moral failure leaving the most vulnerable even more exposed.” For David Waskow, the international climate director of the US-based World Resources Institute, the most critical issue to resolve now is the loss and damage funding. “A lot can be unlocked in other areas if that is resolved,” he said.