Phase IFoundation
Background
Overview
It represents a crucial step in international climate finance and climate justice, addressing the long-standing demand of developing nations for support in coping with unavoidable climate impacts. It highlights the challenges of international cooperation and burden-sharing.
Climate finance refers to local, national or transnational financing—drawn from public, private and alternative sources of financing—that seeks to support mitigation and adaptation actions to address climate change. The Fund for Responding to Loss and Damage (FRLD) is a specific financial mechanism established under the UNFCCC framework to provide assistance to developing countries particularly vulnerable to the adverse effects of climate change.