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Reuters
Reuters
Environment
By Kate Abnett

Explainer-COP27: What is 'Loss and Damage' compensation, and who should pay?

FILE PHOTO: A flood victim pushes his donkey cart on flooded highway, following rains and floods during the monsoon season in Sehwan, Pakistan, September 16, 2022. REUTERS/Akhtar Soomro/File Photo

Nearly 200 countries gathering for the U.N. climate conference in Egypt are expected to lock horns over whether rich nations should pay compensation to vulnerable states hit by climate-fuelled disasters.

The COP27 summit follows a year of such disasters, from floods that killed more than 1,700 people in Pakistan to drought withering crops in China, Africa and the U.S. West. That has intensified developing country demands for a special "Loss and Damage" fund. But with rich countries resisting such calls, the issue has been stalled for years.

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