The paper offers a normative analysis of the new Loss & Damage Fund supporting vulnerable countries grappling with climate change-related harms. This fund is primarily financed by affluent nations, often identified as historical polluters. However, the perspective of relational egalitarianism highlights persistent structural injustices in the background of the fund. Addressing them necessitates conceptualizing the fund not merely as an act of cooperative solidarity but as compensation for the consequences of historical and ongoing structural injustices. Properly conceived, the fund manages (...) adverse climate effects and simultaneously tackles their underlying root causes, including the unjust distribution of advantages and power. (shrink)