The envisaged format includes two segments.
- The first segment will focus on delivering on the Sharm El-Sheikh mandate on the new fund and funding arrangements for loss and damage.
- The second segment will focus on complementarity and coherence of the fund and funding arrangements.
The establishment of new funding arrangements, including a dedicated fund for responding to loss and damage associated with the adverse effects of climate change by the Conference of the Parties to the UNFCCC at its 27th session was welcomed by many as a breakthrough.
Parties acknowledged the urgent and immediate need for new, additional, predictable, and adequate financial resources to assist developing countries that are particularly vulnerable to climate impacts – referring to both economic and non-economic losses, and extreme-weather events and slow-onset events, especially in the context of ongoing and ex-post action (including rehabilitation, recovery and reconstruction).
Parties also acknowledged that existing funding arrangements are not sufficient to address funding gaps related to providing action and support in responding to losses and damages associated with the adverse effects of climate change.