What we committed
At COP28, the World Bank committed to support the operationalization of the Fund for Responding to Loss and Damage (FRLD) as a World Bank-hosted financial intermediary fund for an interim period of four years. The FRLD addresses the critical gap in global climate finance, helping vulnerable developing countries manage economic and non-economic loss and damage from climate change, including extreme weather and slow-onset events. The World Bank will also host the Fund’s secretariat and provide trustee services for the Fund.
What we delivered
- In June 2024, the World Bank’s Board of Executive Directors approved the World Bank’s role as interim host of the independent and dedicated Secretariat, and as trustee of the FRLD.
- In August 2024, the World Bank submitted the FIF documentation, hosting agreement and the trustee agreement between the Fund Board and the World Bank.
- In September 2024, the FRLD’s Board approved the Fund operationalization documents, which were signed the following month.
Impact
These achievements mean that by COP29, the FRLD will be an established financial intermediary fund, with the ability to collect contributions from the international community, and leadership in place to operationalize the secretariat so that the Fund can get money out the door to the people who need it - those hard hit by climate shocks - as fast as possible. Meeting these milestones is a great example of what we can do when we all work together in the face of the global climate crisis.
Next steps
Following the appointment of the Fund’s first Executive Director, Ibrahima Cheikh Diong; and selection of The Philippines as host country of the Board, the World Bank will continue collaboration on: (i) finalization of the operational frameworks, including an operations manual, financial instrument, budget preparation, and access modalities; (ii) assistance to the Executive Directors in establishing the new, dedicated, independent secretariat; and (iii) development of a 2024 workplan with milestones for the Fund’s growth and implementation.
The FRLD’s Board will make all decisions on resource mobilization, funding allocation, and eligibility, with no decision-making role for the World Bank.