At COP28, the Loss and Damage Fund reached its first formal agreement, marking a milestone in the United Nations Framework Convention on Climate Change process. Aimed at assisting developing nations to cope with the most harmful climate impacts, the fund received an initial pledge of around 600 million dollars. This mechanism was a carryover from the previous climate gathering, COP27 in Egypt, and its purpose is to help vulnerable communities withstand economic and social losses caused by climate change.
COP28, which opened in Dubai and runs through December 12, is the setting for this inaugural agreement.
COP28 President Sultan Al Jaber hailed the fund as historic, emphasizing its role in supporting the lives and livelihoods of billions of people most exposed to climate risks. “This Fund will support the lives and livelihoods of billions of people, especially those who are vulnerable to the impacts of climate change”, he stated.
Operational status for the fund follows the five transition committee meetings conducted during COP28, with the fifth session held in Abu Dhabi in early November.
The United Arab Emirates, the host nation, announced a 100 million dollar contribution to catalyze broader participation and pledged that other countries should follow suit immediately, underscoring a sense of urgency and shared responsibility.
EU leads contributions
Spain, representing the EU Presidency, announced that 27 countries would contribute at least 250 million euros to the fund’s background financing. Government sources indicated that President Pedro Sánchez was expected to address the issue during his participation in the climate meeting on Friday.
President Al Jaber praised the momentum, noting that promises made in Sharm El Sheikh had already translated into action in Dubai, and he credited the team for moving this agreement forward on the summit’s first day. He urged the international community to demonstrate unity and speed as the two-week session unfolds, adding that the Presidency would work with Parties to deliver an ambitious response over the coming days.
During discussions, Germany pledged 100 million euros (within the EU total of 250 million euros), the United Kingdom 40 million pounds, Japan 10 million dollars, and the United States 17.5 million dollars.
The summit’s delay-free momentum was highlighted as a sign that the international community can act quickly when there is political will and clear leadership.
Helping underdeveloped countries
This fund is designed to enable the world’s most vulnerable nations to confront climate impacts even if mitigation targets are met. Severe weather, flooding, declining agricultural productivity, and rising sea levels are already affecting communities around the globe, underscoring the urgent need for rapid financing.
The World Bank will serve as interim manager for the next four years, during which an Independent Secretariat must be established. The mechanism aspires to maintain an annual funding level of at least 100 billion dollars to cover losses and damages by 2030.
Participation by countries in providing funding remains optional in the agreement, with highly developed nations being described as invited contributors. Nonetheless, many developing nations estimate that the real need could reach around 400 billion dollars annually.
Following the agreement, Joe Thwaites of the Natural Resources Defense Council warned that substantial work remains to ensure the fund is adequately funded and begins to ease the burden on those most affected. He stressed that success will arrive only when the international community can reliably direct financing to victims in a timely and effective manner.
Harjeet Singh of the International Climate Action Network described the agreement as a historic achievement due to its potential to provide immediate aid to frontline communities. He urged rapid and meaningful contributions from rich, high-emitting nations to accelerate action.
Responsibilities of high-emission nations
All wealthy, high-emission countries now bear a responsibility to step forward. He expressed confidence that contributions would materialize as the fund takes shape. Linda Kalcher, managing director of a strategic think tank, welcomed the initial results but noted that many developing-country concerns were not fully addressed. She stressed that leaders must commit real funds in the days ahead to keep momentum alive.
Over the next two weeks, about 70,000 participants—heads of state and government, officials, business leaders, private sector representatives, researchers, youth, and non-governmental actors—will gather in Dubai. The COP28 agenda centers on four pillars, in addition to climate balance and enhanced collective ambition: accelerating a just and orderly energy transition; strengthening climate finance; focusing on people, nature, and livelihoods; and promoting broad participation across all sectors.