The most powerful bloc calling for the loss and damage program is the UN grouping of 134 nations known as the G77 plus China.

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Its position has slightly shifted from that of the vulnerable island nations also calling for the fund.

While G77 representatives have suggested they would be happy to see a declaration of intent to establish such a fund, some small island states insist the talks will be a failure unless more concrete steps are taken.

The US and a handful of European nations have led opposition to the fund, fearing it would open the door to admitting culpability for climate change with potential future legal implications.

Also at issue is whether China, which despite its increased wealth and power and its huge contribution to global emissions, is still considered a developing nation under the UN Convention on Climate Change.

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The EU’s climate chief, Frans Timmermans, has opened the door to a loss and damage facility should China contribute.

“I think everybody should be brought into the system on the basis of where they are today. China is one of the biggest economies on the planet with a lot of financial strength,” Timmermans said earlier. “Why should they not be made co-responsible for funding loss and damage?”

Late on Thursday night Timmermans addressed the conference saying the EU could support the creation of a fund if it was for “the most vulnerable countries” only, and if it had a “broad donor base”.

Bowen echoed Timmermans’ position at the late night session, saying Australia was attracted to a new fund “with a broad contributor base” that focussed on the most vulnerable nations.

Bowen also said, at the outcome, COP should reaffirm the determination of the previous meeting in Glasgow to pursue efforts to hold warming to 1.5 degrees, a position that some countries, including China and India, had sought to water down.

The statements suggest that progress is being made in the negotiations, which were supposed to conclude by Friday, but which some expected to extend through the weekend.

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