Decision made at COP29 to ensure full operationalization of Loss and Damage Fund (LDF)

Posted 27 Nov 2024

2 min read

Under COP29 Presidency, several important agreements related to Loss and Damage Fund were signed.

These include “Trustee Agreement” and “Secretariat Hosting Agreement (SHA)" between Fund's Board and World Bank as well as “Host Country Agreement” with the Republic of the Philippines.
With these achievements, LDF will be able to start financing projects beginning in 2025.

About LDF:

Establishment of LDF was agreed upon during COP27 held in Egypt and fund was operationalized in COP28, Dubai.
- Fund aims to provide financial assistance to countries most vulnerable to climate change.
"Loss and damage" refers to impacts of climate change that exceed limits of adaptation, as addressed in UN climate negotiations.
Loss and damage includes both economic. and non-economic (disappearance osf cultures and ways of living etc.) losses.
Under LDF, financial support will be provided in form of grants and concessional financing.

Governance: Securing adequate and sustainable funding, who benefits, and where fund is located.
Financial: Balancing interests of donor and recipient countries will be a delicate task.
Scientific: Defining and assessing loss and damage.

Green Climate Fund (GCF): Provides finance for low-emission and climate-resilient development in developing countries.
Adaptation Fund: Supports concrete adaptation projects in developing countries.
Least Developed Countries Fund (LDsCF): Provides grants to sleast developed countries for climate adaptation.