On 20 November 2022, a Decision was taken in Sharm el Sheikh, Egypt, on “funding arrangements for responding to loss and damage associated with the adverse effects of climate change,” which is widely regarded as historic and as the principal outcome of the 2022 UN climate conference (COP 27/CMA 4). In a nutshell, the Decision establishes:
1. “new funding arrangements” for assisting particularly vulnerable developing countries in responding to loss and damage;
2. a loss and damage response fund; and
3. a transitional committee on the operationalization of the new funding arrangements.
In his new post, ecbi Director Benito Müller discusses the need for innovative funding sources and innovative response tools for these new funding arrangements and the new fund, and suggests a way in which both can be quickly developed and tested by operationalising new Loss and Damage Pilot Funding Arrangements.