The Philippines has achieved a milestone in supporting the global response to the threat of climate change with its election last July as the host country of the Board of the Fund for Responding to Loss and Damage.
The country’s bid, which won over seven other contenders, was prepared through a whole-of government approach led by the Department of Environment and Natural Resources, supported by the Department of Foreign Affairs, Department of Finance, Department of Budget and Management, Climate Change Commission, Department of Justice and the National Economic Development Authority.
The Fund, which was operationalized at the COP 28 UN Climate Change Conference in 2023, was established to help vulnerable countries recover from climate impacts. It is mandated to assist developing countries that are particularly vulnerable to the adverse effects of climate change in responding to economic and non-economic loss and damage associated with the adverse effects of climate change, such as extreme weather events and slow onset events.
As a country beset by typhoons, floods and the resulting loss of lives and livelihoods, the Philippines needs to take an active role and be strong voice in the discussions on global climate action.
It is therefore significant that the Philippines also has a seat on the Board itself, which is composed of 26 members from Parties to the United Nations Framework Convention Climate Change (UNFCCC) and its Paris Agreement, with 12 members from developed country Parties and 14 members from developing country Parties.
The Board had its first meeting in May 2024, which provided the first opportunity it to engage with the World Bank on establishing the Fund as a World-Bank-hosted financial intermediary fund (FIF). The Board and the World Bank exchanged their views on the conditions for establishing an FIF, including ensuring that the most vulnerable people on the frontlines of climate impacts are able to access support from the fund, including through direct access to fund resources.
On 28 August 2024, President Ferdinand Marcos Jr. signed into law Republic Act No. 12019 which grants the Loss and Damage Fund Board juridical personality and legal capacity. It allows the Board to contract, acquire and dispose of immovable and movable property, and start legal proceedings. It can also negotiate, conclude and enter into a hosting agreement with the World Bank as an interim trustee and host of the Fund’s secretariat, and undertake activities needed to discharge its duties.
Developed countries that account for most of the world’s greenhouse gas emissions have pledged USD661.39 million to the fund, but this is far below the USD100 billion to USD580 billion global estimates for the annual loss and damage in developing countries.
By hosting the board, the Philippines has a huge challenge in attracting support from developed countries and development partners to provide financial contributions in addressing losses and damage due to climate change.
