The Fund for responding to Loss and Damage has reached a historic milestone following its third meeting in Baku, marking a critical step toward becoming fully operational by 2025. Hosted by the COP29 Presidency of Azerbaijan, the Board finalized key agreements, including the appointment of an Executive Director and trustee arrangements with the World Bank.
With nearly $800 million in pledges from various countries, the COP29 Presidency aims to convert these commitments into actionable funds at the upcoming summit. The funds will be directed toward communities suffering the most from climate change impacts. COP29 President-Designate Mukhtar Babayev called the day a “truly historic” moment for global climate action.
“This breakthrough in Baku marks a crucial step in enabling action on climate change. This is a truly historic day, years in the making, that has required determination from so many and an unwavering focus on the needs of those on the frontlines of the climate crisis. The COP29 Presidency will continue to seek further pledges to the Fund and work across the wider loss and damage landscape to ensure that we build on today’s historic achievements,” Babayev stated.
The meeting also saw the approval of high-level dialogues to be held at the margins of COP29, co-hosted by Azerbaijan. The operationalisation of the Fund follows years of negotiation and is seen as a turning point in addressing the funding gap for vulnerable nations, with the World Bank’s involvement adding credibility and momentum to the initiative.
With COP29 around the corner, this development is one of the key objectives for the Presidency, signaling a significant moment in the global climate process. The Fund, which was first established at COP27, is now preparing to make a meaningful impact by directing resources toward the most affected communities as the climate crisis deepens.
This achievement in Baku is expected to be a stepping stone for future contributions, with countries rallying to address the pressing needs of those living on the front lines of climate-related loss and damage.
UNFCCC announced Ibrahima Cheikh Diong as Executive Director.
