Loss and Damage Fund at COP28 Summit

About:

• Loss and Damage Fund is designed to assist developing countries affected by climate change.

Purpose:

• It aims to provide financial aid for rescue and rehabilitation in countries suffering from climate change impacts.
• The fund addresses compensation owed by industrialized nations, responsible for significant greenhouse gas emissions, to poorer nations facing severe climate repercussions.

Global Impact and Future Projections:

• Research indicates $525 billion in losses for 55 vulnerable countries over the last 20 years, potentially rising to $580 billion annually by 2030.

Fund Management and Operation:

• The World Bank will initially oversee the fund, primarily financed by wealthier nations and some developing countries.

Key Concern:

• Developing nations were initially hesitant about the World Bank’s management role, fearing increased control by richer nations.
• This concern has been addressed, and the terms are now accepted by the participating countries.

Why in News:

• The Loss and Damage fund has been launched at the COP28 climate conference in Dubai.