Outcomes of first Philippine-hosted Loss and Damage Fund Board meeting not enough – civil society groups

By Aksyon Klima Pilipinas
December 9, 2024

QUEZON CITY – Philippine civil society representatives expressed dissatisfaction on the outcomes of the 4th Meeting of the Board (B.4) of the Fund for Responding to Loss and Damage (FRLD) held on 2-5 December 2024 at the Philippine International Convention Center in Pasay City.

“The FRLD can only be as effective as the actual money it has. So far, most of the nearly USD750-million pledges remain mere promises instead of disbursable funding that can concretely support developing countries and the most vulnerable communities,” said John Leo Algo, National Coordinator of Aksyon Klima Pilipinas (AKP) and one of the civil society representatives during the meeting.

B.4 takes place less than two weeks after the conclusion of the 2024 UN climate negotiations (COP29) in Baku, Azerbaijan. In this event, Parties set the new collective quantified goal on climate finance at “at least” USD300 billion of public finance from developed countries per year by 2035, without including any target for funding actions against loss and damage (L&D).

This was also the first Board meeting that took place in the Philippines since it was selected as its host last June. It occurred shortly after the country was battered by six storms in just four weeks, highlighting the importance of setting up the urgent operationalization of the FRLD to support nations frequently hit by extreme weather and slow onset events.

“Coming out of B.4, we now have a more concrete idea of what the Board will prioritize for its ‘Phase One’,” Algo added, referring to the period between January to June 2025. “The prioritization of developing inclusive, country-led processes is essential for assessing their needs to effectively respond to L&D, provided that we will receive technical and financial support. This is especially crucial for our country and reduce our growing vulnerabilities to worsening impacts of the climate crisis.”

Among the other priorities during this phase involve ensuring the operational readiness of the FRLD. These include developing its operational frameworks, the transition to an independent secretariat, and the development of a long-term resource mobilization and plan, including converting pledges into disbursable funding.

Civil society and community representatives at B.4, or Active Observers, succeeded in deferring decisions on proposed policies for participation of non-State actors to the next Board meeting on April 2025 in Barbados. They argued for the need for sufficient time to consult with global and national constituencies, given that key documents were only communicated a few days before the sessions.

Rodne Galicha, AKP National Convenor, welcomed the openness of the Board for a meaningful engagement process with civil society, indigenous peoples, and local communities, stating that “the decision on the creation of an expert advisory panel on loss and damage response and finance must include sectors which shall genuinely help the board to make informed decisions in the context of latest science and experiences of communities affected and may be affected”.

However, the Active Observers criticized some of the proposals made by Board members from developed countries during the meeting.

“The developed country board members' proposals look equitable but stand to potentially hold out the very developing nations the fund is meant to support,” said Jefferson Estela, East and Southeast Asia Steering Committee member of the Loss and Damage Youth Coalition (LDYC) and a youth representative during the meeting.

He cited specific suggestions by the United States representative on using World Bank branch offices to enable virtual participation and fully focusing on specific countries under the Least Developed Countries and Small Island Developing States to receive a large portion of available funding as examples that can perpetuate inequities and jeopardize global solidarity.

Estela also emphasized that “for the FRLD to succeed in its mandate, its governance must fully represent diverse vulnerabilities. In that way, the fund will properly support all the needed countries and help realize the end goal of making people and nations resilient and recovering from the worsening climate crisis.”

Despite these issues, Algo acknowledged the progress made by FRLD Executive Director Ibrahima Cheikh Diong and the current secretariat in just one month since he was designated. However, he highlighted that “the FRLD needs to find the right balance between urgency and diligence, especially in its early months of operationalization. It has to ensure sustainability is reflected not just in substance, but also in its procedures.”

He added that “from the perspective of developing countries and the most vulnerable communities, it is not enough for the FRLD to promise to make the most of what it has. We need more, especially funding from developed countries.”