Explainer: The Loss and Damage Fund
The upcoming COP28 conference will focus on finalising the details of the Loss and Damage Fund, which was established at COP27.
This fund is crucial for developing nations struggling with the devastating effects of climate change.
Loss and damage funding aims to provide financial support to developing countries affected by climate change to help them counterbalance the financial losses and non-economic harms they suffer. For Africa, a continent particularly vulnerable to climate change's effects, loss and damage funding is a lifeline.
Several crucial debates are taking place at COP28, including discussions on funding sources, governance structure, and eligibility criteria for accessing the fund. Developing countries are requesting reliable financial commitments from developed countries, who have yet to agree. Meanwhile, the fund's governance structure is being examined, with discussions centered on the representation of affected communities, civil society organisations, and developing countries.
The eligibility criteria for accessing the fund will also be clarified to ensure that the most vulnerable communities receive the necessary support.
COP28 aims to fully operationalise the Santiago Network, established during COP25, by selecting the secretariat host organisation and members of the Advisory Board, cementing its pivotal role.
The network is tasked with connecting vulnerable developing countries with providers of technical assistance, knowledge, and resources they need to address climate risks comprehensively in the context of averting, minimizing, and addressing loss and damage. Anticipated outcomes from COP28 encompass establishing a well-functioning Loss and Damage Fund—endowed with adequate resources and accessible to vulnerable nations. Furthermore, the integration of loss and damage as a third pillar alongside mitigation and adaptation in climate finance is on the agenda.
The Loss and Damage Fund and the Santiago Network signify crucial strides toward alleviating the dire consequences of climate change in developing countries.
COP28 emerges as a pivotal juncture to operationalize these initiatives, ensuring that vulnerable communities receive the requisite support to adapt and rebound from the relentless impacts of climate change.