COP29 agrees on full implementation of loss and damage fund, disbursement to begin 2025

Parties at the COP29 climate summit in Baku, Azerbaijan, have reached an agreement to commence disbursement of the loss and damage fund by 2025.

“Loss and damage” is a term used by the United Nations to describe the impacts of climate change that go beyond what people can adapt to.

The fund was launched at COP28 in the United Arab Emirates (UAE) after several months of negotiations.

The deal reached at COP29 is expected to pave the way for the disbursement of funds to support adaptation and resilience-building efforts in vulnerable countries.

In a statement on Sunday, the COP29 presidency announced that the summit successfully established the loss and damage fund, with disbursement expected to begin next year.

“Significant progress” was said to have been made towards operationalising the fund through close collaboration with the World Bank and donor countries.

“The COP29 Presidency also succeeded in getting the Fund for Loss and Damage up and running and ready to distribute money in 2025,” the statement reads.

“This decision was long awaited by developing countries, including small island states, least developed countries, and African nations.

“This aligns with the priority set by the President of the Republic of Azerbaijan, Mr. Ilham Aliyev, to address the challenges posed by climate change impacts on small island states under the COP29 Presidency.”

Ibrahima Cheikh Diong, a Senegalese-American and former UN assistant secretary general, has been appointed as the executive director of the fund.

Last week at COP29, Sweden pledged $19 million to the fund, bringing the total pledged funding to more than $720 million.