Loss & Damage
Vulnerable countries face upwards of $500bn in climate-related damages by 2030.
2030 Goals
- Establish a clear collective understanding of the role of loss and damage (L&D) funding in the broader climate finance ecosystem.
- Ensure that the L&D Fund is sufficiently capitalized and efficiently managed.
StatusNo progress
No progress
- At COP27, countries agreed to put L&D funding arrangements on the formal agenda.
- At COP28, the World Bank was selected as L&D fund host and countries have pledged ~$700m to the fund.
- COP29 presidency announced the full operationalization of the L&D fund in 2025—called Fund for Responding to Loss and Damage (FRLD)—with Philippines as its host. Total pledged funds exceeded USD 730 million.
Relevant Actors & Audiences
Governments
UK Foreign, Commonwealth and Development Office (FCDO), German Federal Ministry for Economic Cooperation and Development (BMZ), Philippines, Barbados
Multilateral Development Banks
ADB Asia-Pacific Climate Finance Fund (ACliFF), Global Index Insurance Facility (GIIF), Global Risk Financing Facility, World Bank , African Development Bank (AfDB)
Public FIs
KfW InsuResilience Solutions Fund
Leading Countries and Alliances
V20 Finance Ministers of the Climate Vulnerable
International Organizations
United Nations Framework Convention on Climate Change, United Nations Development Programme, Green Climate Fund
Milestones
The below events contain milestones related to Loss & Damage.
June
4th International Conference on Financing for Development
Milestones
Loss & Damage
FRLD finalizes operational guidelines, including criteria for fund disbursement.
September
New York Climate Week 2025
Milestones
Loss & Damage
First disbursements made prioritizing small island states and climate-vulnerable economies.
Resources
The below resources all pertain to the topic of Loss & Damage.
Fund for Responding to Loss and Damage
Commitments and ambition, Loss & Damage
The interim secretariat of the United Nations Framework Convention on Climate Change (UNFCCC), Green Climate Fund (GCF) and United Nations Development Programme (UNDP).
Fund for responding to Loss and Damage ready to accept contributions
Commitments and ambition, Loss & Damage
The Fund for responding to Loss and Damage is now ready to accept contributions after the signing of key documents. The Fund will serve as a lifeline by providing critical and urgent support for those impacted by the devastating consequences of climate change. With this important milestone reached, the Fund is now expected to start financing projects in 2025.