Along with adaptation and mitigation, “loss and damage” has emerged as the “third pillar” of action in relation to climate change. “Loss and damage” is the consequence of two convergent processes. Firstly, decades of political organizing and lobbying by Global South and Annex 2 countries in the United Nations Framework Convention on Climate Change (UNFCCC) forums, who have long argued for the acknowledgment of losses and damages already incurred as a consequence of climate change. Secondly, the realization by Global North and Annex 1 countries that losses and damages are fast becoming a present reality due to the lack of climate action. “COP27” in Sharm El Sheikh in Egypt in 2022 was a historical turning point when, after decades of protracted discussion and disagreements, a Loss and Damage Fund was officially established.

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