A long-awaited "loss and damage" fund to help the poorest countries that are vulnerable to climate change was approved as the end of the 27th session of the Conference of the Parties COP 27 to the United Nations Framework Convention on Climate Change UNFCCC.

After days of intense negotiations in Sharm el-Sheikh, Egypt, countries were finally able to reach an agreement to establish a funding mechanism which will compensate some of the most vulnerable nations for climate-induced disasters. The loss and damage fund is to be set up by developed states and international financial institutions to pay for the hazardous effects of climate change on poorer nations, who have been much less responsible for causing global warming. Many delegates agree that there is much work to be done on reducing carbon gas emissions going into the next year's COP28, which will be held in Dubai.