Leading Countries
2030 Goals
01
Establish a clear collective understanding of the role of loss and damage (L&D) funding in the broader climate finance ecosystem.
02
Ensure that the L&D Fund is sufficiently capitalized and efficiently managed.
Loss & Damage
With even the most ambitious mitigation and adaptation action, countries will incur significant costs associated with future climate damages. Vulnerable countries in particular struggle to access sufficient financing to deal with these costs and damages. Beginning to address this gap requires full operationalization of the Fund for Responding to Loss and Damage, improved access to data, information and tools, and sustained international support.
Status
No Progress
At COP27, countries agreed to put L&D funding arrangements on the formal agenda.
At COP28, the World Bank was selected as L&D fund host and countries have pledged ~$700m to the fund.
COP29 presidency announced the full operationalization of the L&D fund in 2025—called Fund for Responding to Loss and Damage (FRLD)—with Philippines as its host. Total pledged funds exceeded USD 730 million.
The fund agreed to at COP27 has since been structured and operationalized as the Fund for Responding to Loss and Damage (FRLD), with around USD 750 million committed to date. The World Bank was selected as Trustee and Secretariat for the fund. The Philippines was selected as the first Host of the Board.
The FLRD is entering its first tranche of disbursements, with a USD 250 million funding cycle under the Barbados Implementation Modalities start-up phase.
Other UNFCCC-led loss and damage functions, such as the Warsaw International Mechanism and the Santiago Network, continue to develop, albeit at a slow and somewhat uneven pace.
Wider loss and damage financing outside of the FLRD is still limited, with many vulnerable countries relying on international humanitarian response for support.
Leading Actors
Cooperation is required between these actors and audiences to drive progress foward in Loss & Damage.
Leading Countries
Barbados
Leading Countries
Germany
Multilateral Development Banks
ADB Asia-Pacific Climate Finance Fund (ACliFF)
Multilateral Development Banks
Global Index Insurance Facility (GIIF)
Multilateral Development Banks
Global Risk Financing Facility
Multilateral Development Banks
World Bank
Multilateral Development Banks
African Development Bank (AfDB)
Public FIs
KfW InsuResilience Solutions Fund
Alliances
V20 Finance Ministers of the Climate Vulnerable
Alliances
G77 & China, like-minded developing countries
International Organizations
United Nations Framework Convention on Climate Change
International Organizations
United Nations Development Programme
International Organizations
Green Climate Fund
Alliances
African Group of Negotiators
Alliances
Alliance of Small Island States (AOSIS)
Key Milestones
Showcasing the key reform milestones for Loss & Damage that have been addressed at global events.
Washington DC, US
WBG/IMF Spring Meetings
View Event- Loss & Damage
Discuss how international financial institutions can complement the Loss and Damage architecture by providing predictable, grant-based support for slow-onset events and climate-related mobility, while avoiding additional debt burdens
- New NDCs
Discussions should shift from NDC ambition to implementation at scale, focusing on how international financial institutions can help close the financing gap facing developing countries through country platforms, policy-based finance, and risk-sharing instruments
Bonn
UN meetings
View Event- Loss & Damage
The Bonn discussions should prioritize operational coherence across the WIM, the FRLD, and the Santiago Network,and how the forthcoming State of Loss and Damage Report and BTR guidance will inform funding decisions and technical support.
- New NDCs
Parties should discuss and address how the projected 12% emissions reduction by 2035 can be strengthened to avoid overshooting 1.5°C, especially through enhanced ambition and support from developed countries.
Learn More
Publications and educational material to deepen understanding of Loss & Damage.
What happened on loss and damage at COP 30?
Loss & Damage
Article which explains how COP 30 in Belém, Brazil addressed loss and damage from climate change, highlighting outcomes like the third review of the Warsaw International Mechanism for Loss and Damage and guidance for the Fund for Responding to Loss and Damage, and noting weak financial commitments to vulnerable countries.
G20 South Africa Summit: Leaders’ Declaration
Loss & Damage
Comprehensive joint statement from G20 leaders meeting outlining commitments to tackle global challenges through multilateral cooperation, and highlighting climate action as central to sustainable development and economic resilience, with increased attention to supporting vulnerable countries facing climate impacts. It underscores the need to strengthen financial mechanisms, disaster risk reduction, and international cooperation to address climate-related loss and damage.
Addis Ababa Declaration on Media, Climate, Peac, Security and Justice
Loss & Damage
Declaration that calls for a justice‑oriented, coordinated response integrating climate action with peace and security, and urges scaling up climate finance, including predictable support for non‑economic loss and damage.