Daily News Analysis » Loss and Damage Fund at COP28 Summit

Loss and Damage Fund at COP28 Summit

It is a survey conducted by the NSO under the Ministry of Statistics and Programme Implementation (MoSPI).


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

Loss and Damage:

  • As defined by the Intergovernmental Panel on Climate Change (IPCC), Loss and Damage includes both economic and non-economic impacts. 
  • Economic impacts are quantifiable damages like infrastructure rebuilding costs, while non-economic impacts involve trauma, community displacement, and biodiversity loss.


  • 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.