The COP27 decision and future directions for loss and damage finance: Addressing vulnerability and non-economic loss and damage

Abstract

This article discusses critical gaps in finance for loss and damage and analyses the decision on funding arrangements for loss and damage made at the Sharm el-Sheikh climate conference (COP27) in 2022. The article first considers the history of various loss and damage finance proposals, including the loss and damage negotiations in the lead-up to COP27. The article then considers in detail the agreed COP27 decision on loss and damage finance. The article concludes with a discussion of future directions in loss and damage finance. In particular, it discusses the importance of future loss and damage finance arrangements for addressing non-economic loss and damage and also offers analysis of the criteria associated with ‘particularly vulnerable’ developing countries.