The Loss and Damage Fund was initially established during COP27 in Egypt to provide financial assistance to nations most vulnerable to the consequences of climate change. COP28 in the United Arab Emirates subsequently decided to launch its operations, setting the stage for COP29 to take decisive action.
Under the leadership of the COP29 Presidency, crucial steps have been undertaken to operationalise the Fund. Collaboration with the Fund's Board and the World Bank culminated in September's pivotal third Board meeting in Baku, where key measures were implemented. This included the appointment of Ibrahima Cheikh Diong as the Fund's Executive Director, ensuring robust leadership for the initiative.
Within the framework of COP29, several landmark agreements were formalised, including:
- The Trustee Agreement and Secretariat Hosting Agreement between the Fund's Board and the World Bank.
- The Host Country Agreement between the Fund's Board and the Republic of the Philippines.
These agreements solidify the Fund’s administrative and operational foundation, enabling it to begin financing projects by 2025. With pledged contributions exceeding $730 million, the Fund is poised to deliver on its promise of aiding vulnerable nations in addressing loss and damage caused by climate change.
The operationalisation of the Loss and Damage Fund represents a significant accomplishment for Azerbaijan's COP29 Presidency, highlighting the country’s commitment to global climate action and multilateral cooperation.
