Loss And Damages Fund : COP27
COP27 established ‘Loss and Damages’ fund (L&D) for climate reparations.
- It refers to costs the rich and developed countries, who are majorly responsible for industrial emissions that pollute the environment, should pay to poorer nations that have made negligible contribution to pollution but are more vulnerable to extreme climate events.
- The expected monetary compensation from the L&D fund is estimated to be nearly $500 billion and rising by $200 billion annually.
- 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 at the next Conference of the Parties (COP) of the UN’s Framework Convention for Climate Change, to be held in the UAE in 2023.