Loss and Damage in Climate Talks: A 2025 Guide

What Does “Loss and Damage” Mean?

In climate negotiations, loss and damage refers to the harms caused by climate change that cannot be avoided or adapted to. This includes sudden disasters like floods, hurricanes, and wildfires, as well as slow-moving problems like sea level rise, drought, and desertification. Loss and damage can be both economic (such as destroyed homes, lost crops, or damaged infrastructure) and non-economic (like loss of lives, cultural heritage, or community).

How Did Loss and Damage Become a Big Topic?

The idea of loss and damage has been discussed for decades in international climate talks. Small island nations and developing countries-those most affected by climate change-have long pushed for the world to recognize and address these unavoidable impacts.

Key moments in the history of loss and damage:

  • Early 1990s: Small island states first propose the idea of insurance to help countries hit hardest by climate disasters.
  • 2013: The Warsaw International Mechanism is created to study and address loss and damage, but with little funding.
  • 2015: The Paris Agreement officially includes loss and damage as a key area, alongside cutting emissions and adapting to climate change.
  • 2022: At COP27, countries agree to create a dedicated Loss and Damage Fund after years of advocacy from vulnerable nations.
  • 2023: At COP28, the Loss and Damage Fund is officially launched, with countries making their first financial pledges.

Also Read – What Happened at COP28 and How It Builds on COP23’s Legacy

Why Is Loss and Damage So Important for Developing Countries?

Developing countries and small island states are often the least responsible for climate change but suffer the most from its impacts. For them, loss and damage is not just about money-it’s about justice and survival.

  • Extreme vulnerability: A single storm, flood, or drought can wipe out years of progress.
  • Limited resources: Many of these countries cannot afford to rebuild or recover without outside help.
  • Climate justice: Those most affected by climate change want fair support from wealthier countries, who have historically produced the most greenhouse gases.

The Loss and Damage Fund: What Happened at COP28?

At COP28 in Dubai, the Loss and Damage Fund was officially launched to help vulnerable countries deal with the aftermath of climate disasters and build resilience for the future.

Key facts about the Loss and Damage Fund:

  • Purpose: To provide financial support for recovery, rebuilding, and long-term resilience after climate disasters.
  • Initial pledges: Countries pledged over $700 million to the fund at COP28. While this is a positive start, it is far below the estimated needs, which reach hundreds of billions of dollars each year.
  • Governance: The fund will be managed by a new board, with the World Bank acting as an interim host for the first four years. The board will decide how money is distributed and ensure transparency.
  • Who benefits: The fund is designed to prioritize support for the most climate-vulnerable countries, especially small island developing states and the least developed nations.

What to Watch for at COP29 in 2025

As COP29 approaches, there are several important questions and expectations:

  • How will the fund be filled? Current pledges are only a small fraction of what is needed. Will wealthier countries contribute more? Will new sources of funding be found?
  • How will money be distributed? There is a need for clear, fair rules so that the most vulnerable countries get timely help.
  • How will accountability be ensured? It’s important that funds reach those who need them most and are used effectively.
  • Will the fund deliver climate justice? Many are watching to see if the fund truly helps those who have contributed least to climate change but face its worst impacts.

Conclusion

Loss and damage is about helping people and countries recover from the unavoidable impacts of climate change-especially those who did the least to cause the problem. The creation of the Loss and Damage Fund at COP28 was a historic step, but much more funding and action are needed. As COP29 approaches, the world will be watching to see if leaders can deliver real support and climate justice for the most vulnerable.

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