A global financial package to aid vulnerable nations in coping with climate change impacts
The Mechanism
It requires rich nations who are major contributors to global warming, to pay poorer nations affected by rising sea levels, floods, droughts, and cyclones
Funding Commitments
Total estimated initial funding stands at $475 million, with the European Union pledging the highest $275 million
Evolution of the Fund
Initially announced during COP27 in Sharm el-Sheikh, Egypt, resolutions led to iron out differences between rich and poor nations at COP 28 in Dubai
What is Loss and Damage?
Categorized as economic or non-economic (immeasurable impact) on lives, biodiversity, and cultural identities, but without a universal definition
Historical Industrial Damage
US, UK, and EU are responsible for 50% of Industrial Era (since 1850s) adding Russia, Canada, Japan, and Australia totals two-thirds
Magnitude of the Fund
55 vulnerable countries suffered $525 billion in climate crisis losses in the last 20 years
Future Projections
IPCC predicts increasing losses with rising global warming to reach $580 billion annually by 2030 for developing nations
Fund Management
Initial oversight by the World Bank, funded by US, UK, EU and select developing countries
COP
Conference of Parties is an Annual United Nations Framework Convention on Climate Change-organized international meet involving 198 countries