The loss and damage fund established to assist nations vulnerable to climate change is now approaching $400 million, falling short of the $788 million previously pledged, according to Ibrahima Cheikh Diong, the fund’s executive director. During a press conference, Diong emphasized the distinction between pledges made by countries and the actual disbursement of funds.
The Philippines is currently serving as the host for the board that oversees the fund, which aims to address irreversible impacts stemming from extreme weather events. Diong noted that having secured half of the pledged amount as actual funding is a positive development, considering the challenges faced in transitioning from commitment to cash. The World Bank manages this fund, which is crucial for developing countries requiring substantial resources—estimates suggest around $1.3 trillion annually—to meet their climate goals. By 2024, nations agreed on a new target for climate financing of $300 billion per year by 2035.
Recently, the board wrapped up its seventh meeting in Manila on October 9, just before world leaders convene in Belem, Brazil for the upcoming UN Climate Change Conference (COP30). Diong mentioned that during COP30, the board would invite proposals for funding, processing requests from countries over the following months to ensure that submissions align with the board’s criteria. Countries will be required to designate a “focal point” to liaise with the board on progress and priority needs.
The fund’s purpose is to assist countries grappling with the consequences of climate change, particularly in light of increasingly severe weather and slow-onset events. This fund was established at COP28 in Dubai, UAE, in 2023. In conjunction with the ongoing meeting in Manila, environmental groups rallied for more ambitious climate targets and reforms, including legislation aimed at holding fossil fuel companies accountable. Advocates like Maya Quirino from the Legal Rights and Natural Resources Centre stressed the importance of implementing national laws that demand accountability from polluters.
The COP presidency has branded COP30 as the “implementation COP,” signaling a shift toward actualizing the aspirations laid out in the historic Paris Agreement from a decade ago.
The current engagements and financial allocations hint at a turning point in climate finance, particularly for nations needing immediate assistance. As pressure mounts for greater accountability and action, the hope is that the commitments made will translate into significant financial resources that empower vulnerable communities to build resilience against the ever-growing threats of climate change.