As the 28th Conference of Parties (COP28) to the United Nations Framework Convention on Climate Change (UNFCCC) approaches on November 30, one critical issue looms large — the fate of the much-anticipated Loss and Damage (L&D) fund. This fund, initially agreed upon during the 19th Conference of the Parties (COP 19) in 2013, has seen a tortuous journey towards realisation, with its prospects still shrouded in uncertainty. It took nearly a decade for representatives of UNFCCC member states to reach an agreement in 2022 to establish the L&D fund. A Transitional Committee (TC) was formed to delineate the operational intricacies of the fund, with the expectation that recommendations would be presented for adoption by COP28. The TC was scheduled to convene four times this year, progressing from TC1 to TC4, with the primary objective of finalising the fund's details. However, these meetings revealed a stark lack of consensus between developed and developing nations on crucial aspects of the L&D fund. Contention points included the hosting of the fund at the World Bank, the foundational principle of Common But Differentiated Responsibilities (CBDR), climate reparations, and the eligibility criteria for developing nations to access the funds. Tensions escalated rather than abating, prompting the unexpected TC5 meeting. Developing countries are apprehensive about the credibility of the World Bank in hosting the fund, given its Western leanings. They are also concerned about the 17 per cent hosting fee proposed by the World Bank — which is described as “highway robbery” by some representatives from the developing countries. Furthermore, by trying to exclude the developing countries from the eligibility criteria, developed countries have attracted widespread backlash for negating realities on the ground. This lack of agreement raises concerns that even if consensus is eventually reached, the existing divergences could foster inaction on the pressing issue of climate-induced losses and damages. Notably, TC5 managed to forge a momentary compromise between the two blocs. Developing nations conceded to the interim hosting of the fund by the World Bank Financial Intermediary Fund for four years, facilitated by a dedicated and independent secretariat. However, developed nations, particularly the United States, have remained non-committal about being primary donors to the fund, rejecting references to CBDR, equity, and liability in the draft. This turn of events reflects two disconcerting aspects—climate injustice and a setback to climate adaptation goals. The L&D fund is pivotal to climate justice, aiming to address the disproportionate impacts of climate change on vulnerable nations. By sidelining the voices of developing nations that are often at the forefront of climatic catastrophes, TC5 has cast a shadow over the very essence of climate justice. The implications of these negotiations are not confined to meeting rooms; they reverberate on the ground, where the lives and livelihoods of a substantial portion of the global population hang in the balance. It is crucial for parties engaged in these dialogues to recognise that any delays and obstructions they introduce will jeopardise vital missions. Climate change is not a future prospect but an urgent reality impacting lives today. The failure to establish a robust L&D fund only amplifies the vulnerability of nations already grappling with the severe consequences of a changing climate. As the COP28 unfolds, the world watches, not just for diplomatic manoeuvres but for a commitment to justice, equity, and shared responsibility in the face of an escalating climate crisis. The decisions made within those conference halls will echo far beyond, shaping the destiny of our planet and the generations to come.