Background

The Conference of the Parties (COP) and the Conference of the Parties serving as the Meeting of the Parties to the Paris Agreement (CMA), through decisions 2/CP.27 and 2/CMA.4, established new funding arrangements for assisting developing countries that are particularly vulnerable to the adverse effects of climate change, in responding to loss and damage. In this context, the COP and the CMA also decided to establish a fund for responding to loss and damage whose mandate includes a focus on addressing loss and damage to assist developing countries that are particularly vulnerable to the adverse effects of climate change in responding to economic and non-economic loss and damage associated with the adverse effects of climate change, including extreme weather events and slow onset events.

The COP and CMA at its twenty-eighth and fifth sessions, operationalized the Loss and Damage Fund as an as entity entrusted with the operation of the Financial Mechanism of the Convention, which would also serve the Paris Agreement. The Fund will be accountable to and function under the guidance of the COP and the CMA.