Developing countries are calling out wealthy nations for not following through on their promises to deliver climate damage aid.

As Climate Home News reported, rich countries pledged $789 million to the Fund for Responding to Loss and Damage two years ago. However, they have collectively paid only $348 million so far, with no indication of when the remainder will be distributed. 

What is climate loss and damage funding?

The Fund for Responding to Loss and Damage addresses vulnerable communities' needs in developing nations that have been devastated by weather events fueled by the changing climate. The fund helps pay for initiatives to help these communities recover from extreme storms, rising sea levels, and other climate-related crises.

A 26-member board oversees the fund, with 14 members serving from developing countries and 12 from wealthier nations.

Nations established the fund at the 2022 United Nations Climate Change Conference and operationalized it at the 2023 conference. The fund received initial pledges from 28 countries, 22 of which have signed contribution agreements.

Nations with the largest gaps between pledging money and delivering it include Italy, the United Arab Emirates, France, the United Kingdom, Australia, and Sweden. 

Why is funding essential for victims of the changing climate?

A 2024 study assessed that the changing climate causes approximately $395 billion in losses and damages annually. Developing countries bear the brunt of that financial burden because they lack the resources to rebuild after natural disasters.

There's no denying that addressing the effects of the changing climate is expensive. However, not addressing the devastating impacts as early as possible will result in greater costs in the long run.

With multiyear disbursement schedules rather than full upfront payments, the fund's board isn't able to spend the money effectively and where it's most needed.

There is a lack of predictability and transparency surrounding the delayed payments, too. The funds available aren't enough to complete proposed repair projects, leading the board to consider seeking private-sector financing.

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However, some board members, including Egypt's Mohamed Nasr, oppose leveraging private money because the fund's purpose is to help people suffering from the climate crisis — not provide investment opportunities.

"This should not be part of any criteria when we deal with loss and damage funding," Nasr said, per Climate Home News.

Philippines President Ferdinand Marcos emphasized the urgency of receiving these funds and said, "Every delay means more families without shelter, more livelihood disrupted and worse — more lives lost." 

How climate funding helps people in developing nations

Despite the slow movement of funds, the board is still expecting to approve its first climate projects by early next year. There will be a call for proposals in October, and first approvals will be granted in February, according to Climate Home News.

Climate aid is critical for poor communities because it helps them recover from disasters and boost their resiliency for subsequent storms. Climate projects in developing nations may focus on securing safe drinking water, relocating homeowners from flood-prone areas, and reviving economic growth.

You can support the needs of vulnerable communities in developing nations by contacting your elected officials and encouraging their support of climate action policies.

You can also learn more about the critical climate issues affecting people worldwide and reach out to organizations to offer donations or volunteer efforts.

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