On 9 July 2024, at the second meeting of the Board of the Fund for responding to loss and damage in Incheon, South Korea, unanimously decided to call it the “Fund for responding to Loss and Damage“(FrLD).
The board also decided that Philippines will be the host country for operations of the fund.
About Loss and damage fund
Loss and damage refers to the negative consequences that arise from the unavoidable risks of climate change, like rising sea levels, prolonged heatwaves, desertification, the acidification of the sea and extreme events, such as bushfires, species extinction and crop failures.
At the UN Climate Change Conference 2022 (COP27) in Egypt, an agreement was reached to create a fund that will help low-income developing countries offset the damage from natural disasters caused by climate change.
The Fund was operationalized at the COP 28 UN Climate Change Conference in Dubai in December 2023.
Named the “Loss and Damage Fund,” this financial mechanism was designed to provide crucial support to vulnerable nations facing the brunt of climate-related challenges.
Following the announcement of the fund, several developed countries pledged more than $420 million in voluntary contributions at the Conference.
The World Bank is the interim trustee of the Fund.
The loss and damage Fund Board comprises 26 members from Parties to the Convention and Paris Agreement, with 12 members from developed country Parties and 14 members from developing country Parties.
