World Bank Approved as Interim Host and Trustee of Climate Change Loss and Damage Fund

Today's decision marks a significant step towards realizing the objectives of the fund, in close collaboration with the Fund for Responding to Loss and Damage's Board.


Devdiscourse News Desk | Washington DC | Updated: 11-06-2024 14:00 IST | Created: 11-06-2024 14:00 IST
World Bank Approved as Interim Host and Trustee of Climate Change Loss and Damage Fund
The Fund Board operates independently from the World Bank and maintains its own governance framework. Image Credit: Wikipedia

The World Bank's Board of Executive Directors has given the green light for the World Bank to serve as the interim secretariat host and trustee of a fund dedicated to addressing loss and damage caused by climate change.

Following a historic agreement at COP28 involving 198 countries to establish a fund aimed at providing financial assistance to the most vulnerable nations severely impacted by climate change, the World Bank has swiftly moved to operationalize the fund as a financial intermediary fund (FIF) hosted by the World Bank for an initial period of four years. Today's decision marks a significant step towards realizing the objectives of the fund, in close collaboration with the Fund for Responding to Loss and Damage's Board.

The World Bank has expressed its appreciation for the Board's decision and underscores the importance of the new fund in offering crucial support and hope to impoverished and vulnerable populations and communities in countries most affected by climate-related impacts.

 The Fund Board operates independently from the World Bank and maintains its own governance framework. It will determine key priorities, including financing decisions, eligibility criteria, and risk management policies. Over the coming months, efforts will be made to operationalize the fund. As Trustee, the World Bank will not engage in fundraising activities or make funding allocation decisions. The identification, preparation, implementation, and monitoring of projects financed by the fund will be the responsibility of implementing entities and direct access recipients, with accountability to the Fund's Board regarding fiduciary, environmental, and social aspects.

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