Loss and Damage Fund

The United States has withdrawn from the Loss and Damage Fund, meant to aid developing nations facing climate change impacts. The move has drawn criticism, particularly from the African Group of Negotiators, citing US historical responsibility.

About the Loss and Damage Fund

• Established during COP27 (2022) in Sharm El-Sheikh, Egypt.
• The Loss and Damage Fund provides financial aid to vulnerable nations affected by climate change.
• It addresses economic and non-economic losses, such as rising sea levels, extreme weather events, and biodiversity loss.
• The fund supports the Paris Agreement’s goal of limiting global warming and enhancing climate adaptation efforts in developing countries.

US Contributions & Impact:

• The US contributed $17.5 million to the fund, part of a $750 million global pledge.
• The withdrawal raises concerns about financial support for small island states and developing countries most affected by climate change