Explanation:

Only statement 1st is correct.

Loss and Damage Fund

• The 'Loss and Damage' (L&D) fund is a financial mechanism designed to address the irreversible consequences of climate change that cannot be avoided or mitigated through adaptation efforts.

• This fund recognizes and aims to compensate for the real losses incurred by communities, countries, and ecosystems due to the impacts of climate change. 

• After intense negotiations at COP 27, representatives of the UNFCCC’s member states agreed to set up the L&D fund. Additionally, a Transitional Committee (TC) was established to figure out how the new funding mechanisms under the fund would operate. 

• The TC was tasked with preparing recommendations for countries to consider, deliberate on, and potentially adopt by COP 28.

Hence option 1st is correct.