KATHMANDU, July 10: As the 6th Board Meeting of the Fund for Responding to Loss and Damage begins in Cebu, Philippines from Wednesday, developing country representatives on the Board and civil society leaders have expressed concerns over "the scale and status of resources for the Fund and its inability to meet the growing challenges of the climate crisis."
Developing country representatives on the Board of the UN’s Fund for Responding to Loss and Damage (FRLD) issued a joint statement on Thursday demanding an "urgent and immediate need for new, additional, predictable, and adequate financial resources" to help developing countries respond to escalating climate disasters.
They have also expressed concern over the lack of transparency from contributors, which is “severely limiting” the ability to program funds and reducing confidence in the long-term commitment of partners.
The statement from the developing country constituency highlights that while funding needs for economic damages alone are estimated to be around USD 395 billion in 2025, only USD 348 million is currently available in the Fund. This comes after total pledges of USD 788.68 million, revealing a significant gap between promises and payments.
The developing country constituency maintains its position that the Fund must program at least USD 100 billion a year by 2030 as a minimum and called for the Board to shift its priorities towards launching an initial capitalization and replenishment process that goes "far beyond the initial pledges.”
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Also, in direct response to this crisis of inaction, a global coalition of climate justice movements and civil society groups representing thousands of organizations launched “Fill The Fund,” a new global campaign to demand wealthy nations and corporate polluters meet their historical responsibility to pay for the climate crisis.
Harjeet Singh, convenor of the new global campaign “Fill The Fund” on Loss and Damage Finance, said that the historic fund will be "meaningless if it is not filled with new, additional, and accessible public grants." The "Fill The Fund" Campaign Hub is hosted by Satat Sampada Climate Foundation, India.
Saying that the new campaign will unite the voices of thousands of organizations to demand that developed countries stop shirking their responsibilities, Singh added, "The 'Fill The Fund' campaign will coordinate global advocacy, track pledges and payments through a public dashboard, and mobilize citizens to pressure governments ahead of key moments, including the COP30 climate conference in Belém, Brazil.”
Addressing a virtual press conference on the launch of the "Fill the Loss and Damage Fund" on Wednesday, Jotham Napat, Prime Minister of Vanuatu, highlighted the need to scale up funds to address the actual needs of developing countries.
"Pledges alone cannot rebuild what has been erased by the climate crisis in Vanuatu and across the world. A single cyclone caused over \$500 million in damages, yet we are capped at receiving just \$20 million a year from the Loss and Damage Fund," he said in a video message.
“The question now is whether the Fund will be able to mobilize the scale of resources needed to meet the moment and deliver—especially when we consider that children in developing countries suffer more than \$400 billion in impacts annually."
Speaking on behalf of the G77 constituency, Elena Cristina Pereira Colindres, FRLD Board Member (Honduras), expressed concern over the current financial situation and the lack of clarity on the overall scale of the Fund, highlighting that "it will likely affect the start-up phase and the long-term scaled financing needed from the Fund."
“We therefore raise the question of whether the Board should now shift its priorities towards launching an initial capitalization and replenishment process of new, additional, predictable, and adequate resources at a scale that goes far beyond the initial pledges," she added.
Tasneem Essop, Executive Director of Climate Action Network International, credited leadership and pressure from civil society and developing countries for the establishment of the Fund in 2022.
"However, the real test will be how this Fund is filled. With increasingly devastating climate impacts, felt mainly in the Global South, we are talking billions, not millions, that are needed for recovery and rebuilding," she said.
“Rich nations, who caused harm historically, must pay up. We are talking about public, grants-based finance. The attempts by the World Bank to get the private sector involved in financing the Fund is yet another escape clause for rich nations. You cannot profit off of suffering. Rich nations must pay their dues. They can find the money to fund wars and subsidize fossil fuels, so there can be no argument that there is no money," she added.
The 6th Board Meeting of the Fund for Responding to Loss and Damage will conclude on Friday.
