The establishment of a Loss and Damage Fund was the main highlight of the United Nations Climate Conference (COP27) held in Egypt after the culmination of decades of pressure from climate vulnerable developing countries. Creating a specific fund for loss and damage marks an important point of progress, with the issue added to the official agenda and adopted for the first time at COP27. The hard won deal is a turning point in acknowledging the vast inequities of the climate crisis. For the first time in 30 years of climate talks, developed countries will provide finance towards recovery and rebuilding of poorer countries stricken by climate-related disasters.
Government representatives at the Summit took the ground-breaking decision to establish new funding arrangements, as well as a dedicated fund, to assist developing countries in responding to loss and damage. They also agreed to establish a transitional committee with members from 24 countries to make recommendations on how to operationalize both the new funding arrangements and the fund at COP28 next year. The first meeting of the transitional committee is expected to take place before the end of March 2023.