Security measures are taken around the venue of the 2022 United Nations Climate Change Conference (COP27) in Egypt's Red Sea resort of Sharm El-Sheikh, November 9, 2022. (Photo: CFP)

A deal was reached at UN climate talks on Saturday on creating a fund to cover the losses suffered by vulnerable countries hit by extreme weather, an EU source said.

Rich and developing countries had been deadlocked over setting up a "loss and damage" fund, threatening to derail the COP27 summit, but the European Union source said the issue had now been "agreed".