COP28 in Dubai achieved a historic breakthrough in addressing the finance gap for loss and damage (L&D). On the opening day, the Parties agreed to operationalize the L&D Fund for responding to L&D, which has received U.S. $661.39 million in pledges to date. More than U.S. $100 million was pledged for funding arrangements for L&D. In addition, Parties pledged U.S. $40.7 million to the Santiago Network, which provides technical assistance on L&D and is linked to the L&D Fund.

However, gaps in public sector finance for L&D remain. This paper examines the issues and options for financing L&D from public sector sources.