In a historic decision at COP28, an agreement was reached by 198 countries to move forward with a fund to provide financial support to vulnerable countries hardest hit by climate impact. The purpose of the Fund for responding to Loss and Damage (FRLD) is to assist particularly vulnerable developing countries in responding to economic and non-economic loss and damage associated with the adverse effects of climate change, including extreme weather events and slow onset events. As a new channel for multilateral finance, the FRLD seeks to provide new, additional, predictable, and adequate financial resources to developing countries that are particularly vulnerable to the adverse effects of climate change and assist in mobilizing external finance to address loss and damage, while supporting achievement of sustainable development and the eradication of poverty.
