UN 
On Friday, the board of the UN-backed Fund for Responding to Loss and Damage postponed decisions on its first slate of project approvals, citing an unexpected surge in funding requests far exceeding its current financial capacity. Meeting virtually with representatives from climate-vulnerable nations including Bangladesh, Vanuatu, and Kenya, the board acknowledged that applications received since June outstrip the Fund’s initial US$700 million pool by a factor of at least six.
Board chair Dr. Maria Ndlovu of Zimbabwe described the situation as “a sobering moment for global climate solidarity,” referencing the urgent calls from Caribbean and Pacific Island states facing hurricane and sea-level emergencies this July. With over 70 project proposals submitted since the application portal opened, the board struggled to set criteria that would balance geographic equity, scale of loss, and demonstration of need.
Fund staff confirmed that not a single project will receive funding before August. This comes as heatwaves and flash flooding impact cities from Manila to Dakar, prompting fresh criticism from civil society organizations. “Communities on the frontlines can’t afford more delays—this bottleneck risks undermining trust in the Fund,” said Rajiv Patel, policy advisor at the International Climate Justice Coalition, during a Saturday panel in Geneva.
Major donors, including the European Union and Japan, have yet to confirm additional contributions for 2026. The Fund’s secretariat reported that without new pledges, only a fraction of the urgent requests could be met by year-end. Meanwhile, the Fund’s technical committee is set to reconvene later this month to finalize an interim approval framework, with a focus on rapid-response disaster recovery and infrastructure repair.
With the summer disaster season intensifying and the next board meeting scheduled for late August, pressure is mounting for the Fund to demonstrate delivery, not just intent. Stakeholders across Africa and small-island states are watching closely, wary of a gap between global pledges and actual financial flows.
Frequently Asked Questions
Why has the Loss and Damage Fund delayed approving its first projects?
The Fund delayed approvals due to a surge in funding requests that far exceed its available US$700 million pool, making it necessary to set approval criteria before proceeding.
How many project proposals has the Loss and Damage Fund received since June?
The Fund has received over 70 project proposals since June.
When will the Loss and Damage Fund start disbursing money to projects?
No projects will receive funding before August, as the board postponed decisions to set approval criteria.
Which major donors have not confirmed new contributions to the Loss and Damage Fund for 2026?
Major donors like the European Union and Japan have not confirmed new contributions for 2026.
What is the focus of the interim approval framework being developed by the Fund’s technical committee?
The interim approval framework will focus on rapid-response disaster recovery and infrastructure repair.
