In the run up to COP28 discussions, the policy brief addresses the pressing need for mobilizing finance to address Loss and Damage (L&D) caused by escalating climate change impacts. It highlights the existing financial gap—estimated between USD 290 billion annually by 2030 and USD 1 trillion annually by 2050. While ramping up traditional climate finance remains crucial, the widening L&D finance gap underscores the need for innovative sources of funding given the burgeoning needs of climate vulnerable developing countries. By discussing potential innovative financial instruments, governance principles, and pathways for mobilizing these resources, the brief aims to guide policymakers towards effective strategies and collaborative efforts needed to close the L&D finance gap.