“The bill for climate finance is due now,” said Harjeet Singh, founding director of the Satat Sampada Climate Foundation, kicking off a press conference held during the Sixth Meeting of the Board of the Fund for Responding to Loss and Damage (FRLD) at Cebu, Philippines.

This sentiment was carried in the recorded video message of Jotham Napat, the Prime Minister of Vanuatu. He said, “Pledges alone cannot repeal what has been erased by climate change around the world.”

Napat’s concern is echoed by representatives of other developing and underdeveloped countries, as the “scale and status of resources” for the Loss and Damage Fund are simply not enough, according to a statement issued during the meeting.

The meeting took place between 9-11 July at the Southeast Asian island nation, whose people have faced some of the worst impacts of the human-induced climate crisis.

Developing nations said the lack of transparency and unpaid pledges from developed nations is “severely limiting” the ability to plan and disburse funds for reactive measures to the climate crisis.

At this juncture, a global coalition representing thousands of organisations have launched a ‘Fill the Fund’ campaign to pressurise wealthy, historic polluters to honour their pledges, and pay up to finance the Fund.

Grants, not loans

“We are appealing to board members and developed countries to deliver climate finance generally. We are insisting that the (L&D) Fund has to be grant-based and not loan-based, as developing countries are already paying for climate damages. Public funding is what we are looking at,” said Tasneem Essop, the executive director of Climate Action Network (CAN).

As of now, the developing world needs $580 billion in climate finance. But only $788 million has been pledged, while less than half of that amount — $361 million has been deposited into the fund, according to FRLD’s ‘Status of Resources’ report. But as of now, no country has received any money.

“At face value, the scale of the fund might seem large, but it is not, especially when compared to $0.5 trillion spent on fossil fuels subsidy or $2.7 trillion in military spending,” said Brandon Wu, director of policy and campaigns at ActionAid, USA.

Besides actually pressing for having funds in the Fund, it is important that there a central structure be created for it.

“It is critical that this fund remains unique and inclusive, and be able to disburse with speed, and at scale whenever needed,” said Ambassador Liz Thompson from Barbados.

Having a structure and a set method in place would give assurance to those who are in dire need of funds to tackle climate change impacts, especially least developed countries (LDCs), according to Richard Sherman, member of the South African delegation to the meeting.

“How we mobilise, bank and disperse money to countries is a small step, but has a big footprint. If done correctly, it can be a unique, open and accessible fund where rapid disbursement happens during disasters. It will give assurance to LDCs that the fund will be there,” he said.

Development depends on finance

“Development has stalled and regressed in a lot of countries due to climate disasters. The imperative to keep global temperature to within 1.5°C is a really difficult pill for many countries to swallow,” said Daniel Lund, special advisor to the government of Fiji, during the conference.

He emphasised that non-economic loss and damage — negative impacts from climate crises like deterioration of mental and physical health, and cultural loss — has very real economical implications, and needs some recognition.

“Reducing the burden of loss and damage means reducing the costs of the developing world. Loss and damage begets loss and damage, and it is imperative to break the cycle at the local level,” he said.

According to Essop, the L&D Fund needs to remain rooted in its purpose of helping communities at the frontline of climate change.

“We are very concerned that there is a creeping tendency to view this fund as an asset management company or any other fund. This fund is unlike any other. Its purpose is very different,” she said.

Loss and damage

Loss and damage

Developing nations slam slow progress on loss and damage finance, call to “Fill the Fund”