At the recent COP28 summit, the World Bank pledged to support the establishment of the Fund for Responding to Loss and Damage (FRLD) as a financial intermediary fund. This initiative aims to assist vulnerable developing nations in managing economic and non-economic losses due to climate change impacts such as extreme weather events. The World Bank will serve as both the host of the Fund’s secretariat and its trustee during an interim period of four years.
The World Bank's Board of Executive Directors approved this role in June 2024, which includes hosting an independent Secretariat and acting as trustee for the FRLD. By August 2024, necessary documentation and agreements were submitted by the World Bank, followed by approval from the FRLD’s Board in September.
The progress achieved so far ensures that by COP29, the FRLD will function as a financial intermediary fund capable of collecting international contributions. It is expected to swiftly provide aid to those affected by climate shocks. "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," stated a spokesperson.
Looking ahead, following Ibrahima Cheikh Diong's appointment as Executive Director and The Philippines' selection as host country for the Board, further collaboration with the World Bank will focus on finalizing operational frameworks and assisting in establishing an independent secretariat. Additionally, a 2024 work plan with growth milestones for FRLD implementation is being developed.
All decisions regarding resource mobilization, funding allocation, and eligibility will be made by FRLD’s Board without any decision-making role for the World Bank.