International Mechanisms to Compensate for Climate Loss and Damage: Innovations

Recent trends in climate international regime formation include the development and diversification of multilateral mechanisms to prevent and reduce actual and future risks and damages from impacts of global climate change, including in the most vulnerable countries and regions of the planet. At the moment, the most urgent need is not just to implement any interstate cooperation within the existing regimes (which also has its shortcomings), but also to provide real funding for projects to compensate for losses and damages. At the end of 2022, an important phase of multilateral climate dialogue over the past three decades between the countries of the global North and the global South on institutionalizing their collaboration on financial and technological assistance to reduce climate societal vulnerability resulted in the decision to create a special global fund to cover loss and damage from climate-related natural disasters and promote sustainable development. The authors have identified and analyzed the main issues to be covered during the process of creation of the new international instrument. The forthcoming development of its design, participants’ commitments, funding sources, norms and procedures that meet the top priorities will be based on the experience and best practices of existing regional funds, among other things. The combination of global and regional regulation is shown to be an effective instrument of the current international climate regime. New trends and diversification of mechanisms of international climate regulation are considered as an important element in the process of its further development, implementation and effectiveness in the long term.