Presented by heads of state from UN member countries on the inaugural day of COP28 held in Dubai, the international community has established a loss and damage fund to assist countries in need.

The recently approved fund for loss and damage aims to support countries affected by sudden climate-induced disasters. It also aids countries experiencing losses caused by slowly rising sea levels, threatening low-lying island nations, or inevitable droughts that undermine livelihoods in the agricultural sector and livestock farming as deserts expand.

“The consequences of climate change, such as hurricanes, tropical storms, wildfires, and storm surges, disproportionately impact the world’s most vulnerable developing countries. There is a colossal need for assistance and support, and that need will only grow from now on. Therefore, it is truly positive that we have reached an agreement at COP28 on a new fund. This is something the Danish government has worked hard for. Wealthier countries must take greater responsibility and contribute more to loss and damage caused by climate change, especially in the most vulnerable regions of the globe,” Dan Jørgensen, Minister for Development Cooperation and Global Climate Policy.

In addition to the fund, the government supports other projects on loss and damage with an additional USD 25 million. This funding includes initiatives such as supporting access to warning systems for everyone by 2027. The initiative was launched by the UN Secretary-General during COP27 and aims to protect vulnerable populations by improving access to early warning and weather information, thereby strengthening local climate preparedness and response.

Last year, Denmark became the first country to launch a dedicated loss and damage package of USD 15 million. Denmark co-chairs the International Warsaw Mechanism Executive Committee on Loss and Damage and has been an active member of the international committee that developed the proposal for the new loss and damage fund. Denmark was also the first country to pledge support to the Santiago Network (a network providing technical support to developing countries) for loss and damage in 2021 at COP26.

In this manner, Denmark has taken a leading role in meeting the needs of vulnerable countries in their efforts to address loss and damage, contributing to the realization of the new fund at COP28.

The establishing of the loss and damage fund marks an important step, after the decision to create the fund was made last year during the climate summit in Egypt, raising hopes for potential major climate agreements at COP28.