The Fund for responding to Loss and Damage (FRLD) held its inaugural High-Level Dialogue on the sidelines of the World Bank-IMF Spring Meetings, convened under the leadership of the FRLD Board and in coordination with the United Nations Secretary-General.
Under the theme “Strengthening Response(s) to Loss and Damage through Complementarity, Coherence, and Coordination”, the Dialogue brought together senior representatives of partner governments, multilateral development banks, international financial institutions, UN agencies, climate funds, philanthropic organizations, risk financing and insurance entities and civil society actors to foster collective action in response to the growing impacts of climate change.
The Dialogue welcomed high-level speakers, including COP29 President H.E. Mukhtar Babayev, Ministers from Pakistan, South Africa, and Germany, as well as other senior representatives. In opening remarks, the Co-Chairs of the FRLD Board, Jean-Christophe Donnellier and Richard Sherman, welcomed participants and emphasized the spirit of global solidarity that led to the creation of the Fund. They noted that the Dialogue comes at a critical juncture in the Fund’s development and called for strengthened cooperation to deliver timely and effective support to the most vulnerable nations.
The Minister of Finance of Pakistan, Muhammad Aurangzeb, added the need for speed in responding to loss and damage: “Climate change is an existential threat; we are living it. Even before the floods of 2022. As the Fund becomes operational, our request is for simplicity and agility. We are dealing with our own internal bureaucracies in our own countries. We can’t have decisions to take years; what we need are speedy disbursements.”
A key milestone of the event was the presentation of Proposed Actionable Commitments on Accelerating Action on Climate-Induced Loss and Damage by the Executive Director, Ibrahima Cheikh Diong, on behalf of the Fund and peer financial institutions. He reaffirmed a collective commitment to unify global responses and reduce fragmentation in funding streams:
“Today marks the beginning of a new era of coordinated action driven by global solidarity and leadership. We reaffirm our collective commitment with our partners and stakeholders to reduce fragmentation in funding streams and ensure that resources are delivered effectively to those who need them most. Our shared goal is clear: to ensure that the most vulnerable nations affected by climate-induced loss and damage, receive timely and effective support that reflects their priorities and realities”.
This laid the foundation for two roundtables that explored how institutions can better align mandates, close funding gaps, and build strategic partnerships.
Participants discussed opportunities to streamline access to finance, support national readiness and pre-arranged financing mechanisms, and enhance collaboration among funding arrangements such as the Climate Investment Funds, the Adaptation Fund, the Santiago Network and Global Shield. The issue of prevention was brought up, including better use of data and technology. With the gap between the financing available and the needs, prudent and smart approach is necessary.
“The Santiago Network and FRLD are linked by design but also purpose. One of our core functions is to enable access to finance, technology and capacity building. The Santiago Network brings an existing toolbox, technical guidance and technical assistance platform and a regional presence with 15 members ready to provide support. This is a call to expand our collective response to Loss & Damage. We need to collaborate but also act in synchronicity” said Carolina Fuentes Castellanos, Director of the Santiago Network Secretariat.
The event concluded with reflections and recommendations on the way forward, highlighting the FRLD’s ambition to begin disbursing an initial $250 million primarily delivered in grants to support bottom-up, country-led and community-driven interventions, with at least 50% of funding earmarked for Small Island Developing States (SIDS) and Least Developed Countries (LDCs). The Co-Chairs reaffirmed the Fund’s commitment to being an inclusive and coordinating force within the climate finance ecosystem.
The full outcomes from this dialogue will be included in the FRLD’s annual report that will be presented at the upcoming COP and CMA, shaping future climate finance policies. The dialogue will set the stage for continuous engagement, ensuring sustainable and inclusive financial mechanisms for affected communities.
“This Fund was launched to strengthen our global capacity to respond to loss and damage, and this requires a response that is timely, adequate, comprehensive and efficient. It is therefore crucial that we work together to streamline our collective global response,” emphasised Donnellier.
