What does the historic 'Loss and Damage Fund' agreed for climate-stricken small nations mean?

For the first time, nations have agreed to set up a mechanism where wealthier nations pay poorer nations for the severe climate change impacts they're experiencing like rising sea levels and extreme weather events. The idea for a so-called loss and damage fund was raised by small island states more than 30 years ago. Pacific island nations have welcomed the deal, but say the swift delivery of funds and the recognition of cultural loss will be important.