According to Euronews.green, the Danish foreign ministry stated that 4.7 million euros will go to an organization in Frankfurt that subsidizes insurance in poorer nations.

An additional 4.4 million euros will be allocated to the Danish ministry's "strategic partnerships with civil society, which work with climate-related loss and damage."

The rest of the funding will go towards efforts needed to support the negotiations that will happen at COP27 and also for the those working in developing countries to improve resiliency with regards to the impact of climate change.

Denmark’s development minister Flemming Møller Mortensen stated that "I saw for myself in Bangladesh this spring that the consequences of climate change need increased focus."

"It is grossly unfair that the world's poorest should suffer the most from the consequences of climate change to which they have contributed the least", he added, emphasizing that it's time to act on their behalf.

UN secretary-general Antonio Guterres said that member states should impose higher taxes on fossil fuel companies and use that money to aid poorer countries in their fight against climate change.

According to him, "loss and damage are happening now, hurting people and economies now, and must be addressed now - starting at COP 27."

Scotland and the Wallonia region in Belgium were the first to give money in the fight against loss and damage caused by climate-related events.

Denmark follows these territories and promised its own funding, making it one of the first countries to take this kind of action.