"UN Fund Allocates $21.6 Million to Nepal for Flood Damage"
Loss and Damage Fund
UN fund created at COP27 (2022) to compensate developing countries for climate disaster losses
Green Climate Fund
UNFCCC financial mechanism funding mitigation and adaptation projects, distinct from loss-and-damage compensation
The Fund for Responding to Loss and Damage pays for damage already caused by climate disasters. It does not prevent future emissions. Older funds work differently. The Green Climate Fund is a financial mechanism set up under the UNFCCC (United Nations Framework Convention on Climate Change, the parent treaty on climate change). It was not set up by UNEP, the OECD or multilateral development banks. It mainly pays for mitigation (cutting emissions) and adaptation (adjusting to climate change). It does not compensate countries for losses already suffered.
Developing countries argued for years that a separate fund was needed. They wanted to pay for actual damage. Their case rested on the principle of common but differentiated responsibilities. This principle holds that rich countries caused most past emissions and must bear greater responsibility for fixing the damage. The 1992 Rio Declaration first set out this principle at the Earth Summit. Leaders finally agreed to create the Loss and Damage Fund at COP27 in 2022. Its operating rules were settled a year later at COP28 in 2023. The World Bank serves as the Fund's interim trustee. It holds and manages the Fund's money until a permanent arrangement is set up.
The Fund's Board took a landmark step this week. It earmarked $21.6 million for Nepal to address damage from the August Bhotekoshi floods. This is the first time the Fund has set aside money for one specific country's disaster. The decision came through an extraordinary Board meeting. Nepal's finance and environment ministers wrote directly to the Board's co-chairs. They asked for a rapid, direct response.
The allocation includes $1.6 million in oversight fees. …
Which of the following statements regarding 'Green Climate Fund' is/are correct?
1.It is intended to assist the developing countries in adaptation and mitigation practices to counter climate change.
2.It is founded under the aegis of UNEP, OECD, Asian Development Bank and World Bank.
Select the correct answer using the code given below.
Consider the following statements about the Fund for Responding to Loss and Damage: 1. It was established at COP27 in 2022. 2. Its operational modalities were agreed upon at COP28 in 2023. 3. It primarily funds mitigation and adaptation projects in developing countries. How many of the above statements are correct?
Consider the following statements about the principle of 'Common but Differentiated Responsibilities': 1. It holds that all countries bear equal responsibility for addressing climate change irrespective of historical emissions. 2. It was first articulated in the Rio Declaration of 1992. Which of the statements given above is/are correct?
Which one of the following pairs of climate finance instrument and its establishing basis is correctly matched?
With reference to the Fund for Responding to Loss and Damage, consider the following statements: 1. Disbursement to a country is unconditional and immediate once funds are earmarked. 2. Pledges received so far exceed the total value of requests submitted by developing countries. 3. The World Bank serves as the Fund's interim trustee. How many of the above statements are correct?
Glacial Lake Outburst Floods (GLOFs), which have affected Himalayan regions, are primarily caused by which of the following?
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