● Recently COP27 sets up loss and damage fund

● Delegates at the UN’s climate conference in Sharm elSheikh, Egypt thrashed out an agreement on Sunday to establish a loss and damage (L&D) fund to compensate the most vulnerable countries from climatelinked disasters.

● Crucial questions — such as who will manage this fund, whether contributions are expected from large developing countries and what the fair share of contributors will be — have been left to a “transitional committee” that will make recommendations for the adoption of the fund.

Loss and damage:

● It is used in UN climate negotiations to express the effects of climate change that outweigh people’s ability to adapt.

● It is disproportionately affecting vulnerable communities, making addressing the issue a matter of climate justice.

● While the UNFCCC has not defined loss and damage precisely, it is caused by extreme weather events (cyclones, droughts, heatwaves) and slow-onset changes (sea level rise, desertification, ocean acidification).

● Climate change damages can be classified as economic losses or non-economic losses (such as loss of life).