Only 9% of pledges to Loss and Damage Fund received so far — World Bank

MANILA, Philippines – The World Bank has so far received $68.95 million or 9% of the total $749.25 million that countries pledged to the Loss and Damage Fund, according to a report from the bank presented in Manila on Tuesday, December 3.

This report comes a year after the fund was established during the annual climate negotiations in Dubai in 2023. Countries then agreed to create the Loss and Damage Fund for poor nations dealing with the irreversible impacts of climate change.

“I’m happy to report that we have already received funds that are already now in the bank account,” a representative from the World Bank said on Tuesday.

Denmark, Germany, Ireland, Netherlands, Norway, the United States, and the Walloon Region of Belgium contributed the $68.95 million after signing an agreement with the World Bank.

“The current figure is still a bit low,” said Adão Soares Barbosa, Timor-Leste’s special envoy for climate affairs.

Barbosa said that with this figure, they would have to “make a balance” between their operational needs and the creation of a new, independent secretariat.

“Otherwise, the first intervention will be quite inadequate to address the needs of developing countries with regard to extreme weather event and also slow-onset events by 2025,” said Barbosa.

Delegates around the world are now gathered at the Philippine International Convention Center in Pasay City for the fourth meeting of the fund’s board. The meeting commenced on Monday, December 2, and will run until Thursday, December 5. It follows the climate talks in Baku, Azerbaijan, where the Philippines and the World Bank signed agreements to formalize their roles regarding the fund.

During climate summits, countries usually announce pledges to fund vulnerable countries’ efforts to mitigate and adapt to climate change.

After pledges are made, the questions that usually follow are how much of the pledges are converted into actual money and how the money will reach countries and communities that need them the most.

Nine other countries have drafted agreements to transfer the money. The World Bank expects to receive an additional $70 million by the end of 2024. – Rappler.com