Description

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Context:

Recently, The United States has withdrawn from the Loss and Damage Fund.
This fund was created to help developing countries recover from the damages caused by climate change.

About the Loss and Damage Fund:

Loss and Damage means the negative impacts of climate change like rising sea levels, heatwaves, desertification, & extreme events wildfires, species extinction, & crop failures.
The Loss and Damage Fund was set up at the 2022 UNFCCC Conference (COP27) in It aim was to provide financial aid to countries facing these challenges.
Developing countries, small island nations are the most vulnerable to climate change. They have been demanding financial help.
They argue they are suffering because of climate change caused by wealthier countries.
Around $750 million has been promised for the fund with the US contributing $17.5 million.
The US was one of the few countries to make its payment early.

Governing Board :

The fund is managed by a Governing Board. It decides how the money is used.
The World Bank is the interim trustee & it will manage the fund for the next 4 years.

Paris Agreement:

The Paris Agreement was adopted in 2015. It is a global treaty to fight climate change.
Its main goal is to reduce greenhouse gas emissions & limit global warming to below 2°C ideally 5°C compared to pre industrial levels.
If the 5°C limit is exceeded then it can cause significant damage to vulnerable regions & ecosystems.
Countries must report every 5 years on their efforts to address climate change. It is known as their nationally determined contributions (NDC).

What is COP?

COP stands for the Conference of the Parties.
It is the main decision making body of the United Nations Framework Convention on Climate Change (UNFCCC).
The UNFCCC is an international agreement signed in 1992 by 198 members (197 countries + the European Union) to fight climate change.

Purpose of COP

Every year, COP brings together countries to:
- It reviews their progress on cutting emissions.
- It tracks the progress of climate goals.
- It discusses & creates global climate policies.

Key Events in COP History:

Event	Year	Details
Kyoto Protocol	1997	Agreed at COP3.
		Required developed countries to reduce emissions by 4.2% below 1990 levels by 2012.
Copenhagen Accord	2009	Introduced at COP15.
		Aimed to limit global warming to 2°C and included funding commitments for poorer countries.
		Did not create a binding agreement.
Paris Agreement	2015	Adopted at COP21.
		It Aimed to keep global warming below 2°C, preferably 1.5°C.
		Countries set their own Nationally Determined Contributions (NDCs).
		It Focused on both emission reductions and adaptation to climate change.
Glasgow Pact	2021	Resulted from COP26.
		It Included commitments to reduce coal use and phase out harmful fossil fuel subsidies.
		First COP to mention coal in an official agreement.
Loss and Damage Fund	2023	It was Established at COP28.
		Delegates have agreed to formally establish a loss and damage fund to support especially vulnerable countries dealing with the effects of climate change.

Criticisms of COP

Issue	Details
Failure to Deliver Climate Finance	In 2009, developed countries pledged $100 billion annually to help developing countries fight climate change, but this has not been met.
	A 2021 UN report projected developing countries need $6 trillion per year until 2030.
Insufficient Emission Reductions	Efforts to cut emissions have not been enough to avoid dangerous climate impacts.
	Current plans may still push the world beyond the 1.5°C warming limit, risking irreversible damage.

Next COP

COP29 will be held from November 11 to 22, 2024 in Baku, Azerbaijan.

Source: TOI

Practice Question

Q. Which country recently in 2025 withdrew from the Loss and Damage Fund?

A) China
B) United States
C) India
D) Russia

Answer: B) United States

Explanation:

The United States recently withdrew from the Loss and Damage Fund, despite being one of the first countries to make an early payment into the fund initially.