© IMF Photo / Lisa Marie David
The Philippines has been selected to host the loss and damage fund board, which will bring the fund closer to providing financial help for countries hit the hardest by climate change.
It was chosen from a pool of seven other contenders, including Antigua and Barbuda, Armenia, Bahamas, Barbados, Eswatini, Kenya and Togo.
Philippine president Ferdinand Marcos Jr said in a post on X that hosting the board “reinforces our dedication to inclusivity and our leadership role in ensuring that the voices of those most affected by climate change shape the future of international climate policies”.
The Philippines, which also has a seat on the board, has been hit with climate-induced disasters including increased typhoons. As the host, it has the opportunity to focus the loss and damage fund on the Asia-Pacific region, where many countries have limited resources to handle the impact of climate change.
The loss and damage fund was formally adopted at Cop28 with the idea of providing financial support for vulnerable nations which are facing the brunt of climate-related changes, such as rising sea levels, extreme weather events and climate-induced migration.
The World Bank was picked as the interim host of the fund for the first four years, despite opposition by many countries over concerns about its inefficiency and lack of independence. While the board will be hosted in the Philippines, the World Bank will still host the secretariat.
The fund has only US$661mn pledged of the US$100bn per year that developing countries say is needed to cover climate losses. Who pays for the loss and damage fund has been one of the biggest issues at UN climate talks. Developing countries are often the hardest hit by climate, despite developed countries having historically producing the most emissions. Whether or not developed countries should have to pay to redress the damage they induced has often been a point of contention during climate discussions.
The Philippines will work with the loss and damage fund board to finalise an agreement and must enact legislation to officially become the host.
Climate advocates in the Philippines welcomed the news. Philippine senator and environmental advocate Loren Legarda said being host was an honour and the country must be aware “of the great responsibility it brings”.
“We shall continue to use our voice for climate justice as one of the world’s most impacted countries in the climate crisis,” she said.
Lidy Nacpil, coordinator of the Asian People’s Movement on Debt and Development, said the Philippines should demand more money from developed countries to the loss and damage fund.
“Developed countries should deliver trillions of grants-based finance, not the shameful millions they have pledged thus far,” she said.
This page was last updated January 6, 2025
Written by
Moriah Costa is the Editor-in-Chief of Green Central Banking and has over a decade of experience writing about banking and finance. She is an award-winning American journalist based in Paris and has written for major international publications, including Reuters, The Guardian, and S&P Global. Having grown up in water-stressed Arizona, she has always had a strong interest in bringing awareness to climate and environmental issues.
