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Loss-and-Damage Fund takes step toward operationalisation but critics say betrayal of climate-vulnerable nations
View(s):By Tharushi Weerasinghe
The Global Fund for Responding to Loss and Damage concluded its seventh board meeting in Manila on Thursday, marking what officials called a crucial step toward operationalisation. However, civil society groups condemned the outcome as a betrayal of climate-vulnerable nations, which are still awaiting aid nearly three years after the fund’s creation.
Loss and damage refers to the irreversible harm caused by climate change, such as devastating floods, rising seas, and vanishing coastlines, that countries cannot prevent or adapt to. It includes physical destruction like ruined homes and loss of jobs, as well as displaced communities and disappearing ways of life. Vulnerable nations, like Sri Lanka, argue that the world’s biggest polluters should pay for these consequences.
The three-day meeting in Pasay City resulted in the adoption of key operational policies that will govern the fund’s initial phase, with the board approving a two-year start-up programme worth USD 250 million focusing on extreme weather events. The fund will launch its first call for proposals at the Conference of Parties (COP30) climate summit in Brazil in November.
“COP30 will be the COP of implementation. After years of negotiations, we are now ready to deliver,” said Ibrahima Cheikh Diong, FRLD Executive Director, speaking to the media this week. Mr. Diong characterised the gathering as a pivotal moment in global efforts to support countries bearing the brunt of climate-related catastrophes.
The fund, which now has pledges totalling USD 788 million with approximately USD 400 million released or converted to cash, will prioritise grants ranging from USD 5 million to USD 20 million per initiative during its interim phase.
“Now, the keyword here for us is rapid response,” Mr. Diong explained. He stressed that timing matters as much as the support itself, warning that delayed assistance undermines the fund’s value. The secretariat is working to ensure processes remain streamlined and accessible so resources reach their intended destinations efficiently.
Among the meeting’s key outcomes was the finalisation of eligibility, accreditation and access modalities designed to allow developing countries to apply directly for grants. The board also approved project cycles and funding criteria, establishing what officials described as a clear and transparent route for countries to access resources.
In his message to the board, delivered by Department of Environment and Natural Resources Secretary Raphael Lotilla, Philippine President Ferdinand R. Marcos Jr. urged that the fund’s operations remain “swift, accessible, and human-centred.” Mr. Lotilla explained that this reflects the dual challenge of preparing for future climate impacts while addressing damage already inflicted.
“While I am happy to see the Barbados Implementation Modalities operationalised, I hope it spurs innovative approaches that allow the most vulnerable countries to access resources at scale,” said Ambassador Elizabeth Thompson of Barbados, a board member. However, she emphasised that scaling up depends entirely on adequate financing, noting that current needs vastly exceed available resources.
Ambassador Thompson referenced recent legal developments to underscore accountability. “Particularly in the wake of the International Court of Justice decision, the countries responsible for the climate crisis need to fund the cost of loss and damage suffered by affected countries. This is now an urgent and legal matter,” she stated, framing the issue as one of justice and international law compliance.
Civil society, however, expressed frustration over the pace of funding rollouts.
“It took us 30 years of struggle to finally get the fund established in 2022, and now, nearly three years later, not a single penny has been transferred to communities on the front lines of the climate crisis,” said Harjeet Singh, Founding Director of Satat Sampada Climate Foundation and Global Convenor of the Fill The Fund Campaign. Mr. Singh emphasised that civil society has repeatedly reminded the board that while deliberations continue, people are dying and losing their homes and livelihoods.
“The board has approved an extremely traditional, multi-month project cycle that completely fails to address the fund’s core purpose: getting money to disaster-hit countries within 24-48 hours,” stated Brandon Wu, Policy Director at ActionAid US. Mr. Wu identified insufficient financing as the fundamental problem, arguing that wealthy nations’ failure to provide adequate funds has forced the board to design mechanisms for hundreds of millions when trillions are required.
“The fund was supposed to simplify access and cut out the middleman, but the approved decision is a nine-page document with three annexes that ensures access will be complicated and difficult,” said Liane Schalatek, Associate Director of Heinrich-Böll-Stiftung US. Ms. Schalatek criticised the framework for failing to provide the direct budget support that developing nations had prioritised, noting that funding during this initial phase will flow primarily through multilateral development banks that the fund was meant to circumvent.
Other experts noted that while pledges have surpassed USD 750 million, only about half have materialised. “Governments of the Global North are simply not serious about this fund, and their delaying tactics have been on full display,” said Lidy Nacpil, Coordinator of the Asian People’s Movement on Debt and Development, contrasting the urgent need for a rapid-response mechanism with the slow, bureaucratic project-based system now being implemented.
“The International Court of Justice has made the law clear: financial assistance for climate harm is a legal obligation, not an act of charity,” said Charles Zander Deluna, Campaigner for World’s Youth for Climate Justice. Mr. Deluna explained that the court’s opinion establishes universal responsibility among emitting nations for current damage, requiring full reparation when obligations go unmet. He called on governments to view funding as legal compliance rather than voluntary generosity.
“This fund was set up to be a rapid response to desperate situations, not another bureaucratic machine,” concluded Tasneem Essop, Executive Director of Climate Action Network International. Ms. Essop pledged that civil society would intensify mobilisation efforts to hold governments accountable, noting that the same pressure that created the fund would be applied to ensure it fulfils its promise.
The fund was established at COP27 in Egypt nearly three years ago to address loss and damage suffered by climate-vulnerable nations, marking a significant acknowledgement of responsibility for climate impacts. The tension between operational progress and civil society expectations is likely to intensify as the fund moves toward its first call for proposals at COP30.
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