The Loss and Damage Fund is ready to accept contributions

The Loss and Damage Fund is now ready to accept contributions and will start financing projects by 2025, according to a statement. The fund has seen pledges surpassing USD 720 mn, with Sweden recently committing an additional USD 19 mn. The announcement comes after the fund’s board signed a Trustee Agreement and the Secretariat Hosting Agreement with the World Bank and the Host Country Agreement with the Republic of the Philippines at COP29.

Next steps are crucial: “Now, the Fund needs to identify projects to get support flowing. All countries that have pledged money must complete their contribution agreements. And we need more pledges so we can meet the urgent needs of climate change victims,” said COP29 President Mukhtar Babayev.

ALSO FROM THE WORLD OF CLIMATE FINANCE-

Development banks to ramp up climate finance: 10 of the world’s biggest multilateral development banks (MDBs) — including the World Bank, European Investment Bank, and Asian Development Bank — have pledged to increase climate finance to low- and middle-income countries to USD 120 bn annually by 2030, according to a press release. Of that amount, USD 42 bn will go towards adaptation measures against extreme weather impacts. High-income countries’ combined financing is set to hit USD 50 bn, with USD 7 bn of that figure similarly earmarked for adaptation.

All eyes on the private sector: With Donald Trump set to head into office and governments cutting back on climate funding, the private sector’s role in increasing climate finance is gaining importance, Reuters says. The MDBs are looking to unlock an additional USD 65 bn in financing from the private sector, according to the press release. In 2023, they provided a record USD 125 bn in global climate finance for both climate change mitigation and adaptation efforts, with USD 74.7 bn allocated to low- and middle-income countries and USD 50.3 bn to high-income economies.

ICYMI- Earlier this week, the US and Japan agreed to underwrite risks for the Asian Development Bank’s (ADB) climate loans, effectively supporting the bank in raising its climate lending by USD 7.2 bn. The ADB said it was in talks with other MDBs to assist them in similarly increasing their own climate lending.