Why is the Loss and Damage Fund needed?
While developing nations contributed the least to the climate crisis, they most often face the greatest brunt of the cost. To help nations cope with these costs, the Loss and Damage Fund is needed to:
Support vulnerable countries: Developing countries, especially Small Island Developing States (SIDS), are particularly vulnerable to climate impacts but often lack the financial resources to cope with the scale of the severe loss and damage affecting their communities and economies. The Fund will provide assistance to these countries to help them recover and adapt.
Ensure equity and justice: The Loss and Damage Fund addresses the issue of climate justice by recognizing that some communities and countries, particularly those with low adaptive capacity and those with historical responsibility for greenhouse gas emissions, bear a disproportionate burden of loss and damage.
Complement adaptation and mitigation: While adaptation and mitigation efforts aim to reduce the impacts of climate change, they may not be sufficient to prevent all loss and damage. The Loss and Damage Fund provides a safety net for communities and countries facing unavoidable and irreversible impacts.
Encourage ambitious mitigation: By providing financial assistance for loss and damage, the Fund also incentivizes countries to take more ambitious action to reduce greenhouse gas emissions and limit the severity of climate change impacts.