The 2022 United Nations Climate Change Conference or Conference of the Parties to the United Nations Framework Convention on Climate Change, commonly referred to as COP27, was held from 6th to 20th November 2022 in Sharm El-Sheikh, Egypt. The Conference was concluded with a breakthrough agreement on providing loss and damage funding to vulnerable countries severely affected by climate disasters.
For the first time, countries acknowledged the critical need for financial support to address loss and damage associated with severe impacts of climate change. This recognition signified a shift in global awareness and commitment to addressing the consequences of climate-related disasters. The agreement includes the establishment of a fund dedicated to addressing loss and damage. Countries agreed not only to the establishment of a fund but also committed to working on the necessary funding arrangements.
A “transitional committee” was established and tasked with making recommendations on how to operationalize both the new funding arrangements as well as the fund for consideration and adoption at COP28 this year.
The breakthrough agreement at COP27 is historic because it represents a global consensus on the necessity of financial support for vulnerable countries facing the severe impacts of climate change. The establishment of a fund and the commitment to funding arrangements signify a tangible step towards addressing the justice aspects of climate-related loss and damage.
The Loss and Damage Fund is available for developing countries however, the Least Developed Countries (LDCs) and Small Island Developing States (SIDs) have more access to the fund.