COP29 finalizes approval for complete functioning of Loss and Damage Fund

At COP29, a decision has been reached to fully operationalize the long-awaited Loss and Damage Fund, which is essential for developing countries, particularly small island nations, least developed countries, and African nations, Azernews reports.

This aligns with the priorities set by President of Azerbaijan, Ilham Aliyev, to tackle the challenges of climate change impacting small island states during the COP29 Presidency.

The establishment of the Loss and Damage Fund was initially agreed upon during COP27 in Egypt, aimed at providing financial support to the countries most vulnerable to climate change impacts.

At COP28, held in the United Arab Emirates, a decision was made to initiate the Fund's operations.

Under the COP29 Presidency, significant efforts have been made to ensure the Fund becomes operational, collaborating closely with its Board and the World Bank. In September of this year, during the Fund's third Board meeting in Baku, key steps were taken to start operations, including the appointment of Ibrahima Cheikh Diong as the Fund's Executive Director.

During COP29, several crucial agreements regarding the Loss and Damage Fund were signed, including the "Trustee Agreement" and the "Secretariat Hosting Agreement" between the Fund's Board and the World Bank, as well as the "Host Country Agreement" with the Republic of the Philippines.

As of now, over $730 million has been pledged in support of the Fund.

With these developments, the Loss and Damage Fund is set to begin financing projects as early as 2025, marking another milestone achievement for Azerbaijan's COP29 Presidency.