In a significant step forward for global climate justice, draft decisions released at the ongoing COP30 in Belém, Brazil, highlight substantial progress in operationalizing the Fund for Responding to Loss and Damage (FRLD). Dated November 15, 2025, these drafts — under COP30 agenda item 8(e) and CMA7 agenda item 10(d) — provide a detailed report on the Fund’s activities during its first full year and offer guidance for its continued development.

As climate impacts intensify worldwide, from devastating typhoons to prolonged droughts and rising seas, these drafts signal that the long-fought-for mechanism to support vulnerable nations is transitioning from concept to action.

 A Hard-Won Victory: The Origins of Loss and Damage Funding

The idea of compensating countries for climate-induced “loss and damage” dates back to the early 1990s, when small island states like Vanuatu first raised it during UNFCCC negotiations. For years, it remained marginalized, opposed by major emitters concerned about legal liability.

Key milestones include:

– 2013: Establishment of the Warsaw International Mechanism (WIM) at COP19, focused on research but without funding.

– Major disasters in the 2010s and 2020s — including Typhoon Haiyan (2013), Cyclone Idai (2019), and Pakistan’s 2022 floods — amplified calls for action.

– 2022: Breakthrough at COP27 in Egypt with the formal agreement to create the Fund.

– 2023: Operational details finalized at COP28 in Dubai.

– 2024: Initial pledges and interim structures set up at COP29.

Hosted in Belém, a city emblematic of Amazonian climate vulnerability, COP30 is building on this foundation. The Fund’s governing instrument prioritizes grants (not loans), equity, and support for particularly vulnerable developing countries, including small island states and least developed nations.

 Key Advances in the 2025 Draft Decisions

The drafts note the Board’s 2025 annual report and commend several achievements:

– Barbados Implementation Modalities (BIM): Approved at the Board’s 5th meeting in Bridgetown, Barbados (April 2025), BIM serves as the Fund’s start-up phase for 2025–2026. It enables grant-based, country-driven projects with direct access options, allowing nations to address local priorities like post-disaster recovery or ecosystem restoration.

– First Call for Funding Proposals: Launched during COP30, with at least USD 250 million available initially. Eligible countries can now submit requests, marking the Fund’s shift to disbursing funds.

– Board Progress: Meetings in Barbados (5th), Philippines (6th in Cebu, 7th in Manila), and the establishment of an independent secretariat. Interim support from UNFCCC, Green Climate Fund, and UNDP has facilitated the transition.

– New Pledges: Contributions from countries including Iceland, Japan, Latvia, and Spain, adding to earlier commitments (total pledges exceeded USD 700–800 million by late 2025, though exact figures remain in flux).

The drafts endorse the Board’s 2026 workplan, focusing on:

– Refining BIM with risk frameworks and small-grant policies.

– Developing a long-term operating model, including rapid-response mechanisms.

– Resource mobilization strategy.

– Enhanced coordination with mechanisms like the Santiago Network.

– Greater inclusion of women, youth, and Indigenous peoples.

Direct access for all vulnerable developing countries is reaffirmed, and multilingual support for applications is encouraged.

Parties are invited to submit further guidance ahead of COP31, with the first formal replenishment process slated for 2027.

 Hope for Frontline Nations — But Scale Remains a Challenge

For countries like the Philippines (frequent host of Board meetings and victim of super typhoons) and Barbados (a leading advocate via the Bridgetown Initiative), BIM’s bottom-up approach promises faster, tailored aid.

In Africa and beyond, funds could support drought-resistant farming, community relocation, or cultural preservation. Yet experts and NGOs stress that current resources — a fraction of the hundreds of billions (potentially trillions) needed annually — fall far short. Critics call for mandatory contributions tied to historical emissions.

UNFCCC Executive Secretary Simon Stiell has hailed the “rapid progress” as evidence of multilateralism’s strength, while activists demand trillions to match the crisis scale.

 Looking Ahead

As COP30 continues, these drafts position the FRLD as a cornerstone of the Paris Agreement’s equity pillar. Success depends on converting pledges to payments, minimizing bureaucracy, and scaling ambition. In a warming world, the Fund’s evolution from promise to delivery offers a beacon of hope — and a test of global solidarity. The true impact will be measured not in documents, but in rebuilt lives and resilient communities.