World Bank initiates timeline for Loss and Damage funding | World News - Hindustan Times
close_game
close_game

World Bank initiates timeline for Loss and Damage funding

ByJayashree Nandi
Mar 20, 2024 05:38 AM IST

At COP28, countries reached a historic agreement on the operationalisation of a fund to address loss and damage associated with the adverse effects of climate change

​New Delhi: The World Bank on Tuesday launched a page on Loss and Damage fund including the timeline on establishing a Financial Intermediary Fund, or FIF, a multi-partner trust fund established and used by the international community to pool funding from many sources.

and is moved onto the beach during a nourishment project in Wrightsville Beach, North Carolina. Beach nourishment, or beach filling, is the practice of adding large quantities of sand or sediment to beaches to combat erosion and increase beach width. (AFP)
and is moved onto the beach during a nourishment project in Wrightsville Beach, North Carolina. Beach nourishment, or beach filling, is the practice of adding large quantities of sand or sediment to beaches to combat erosion and increase beach width. (AFP)

This will be done by mid-April this year followed by arrangements for hosting the fund by June. At COP28, countries reached a historic agreement on the operationalisation of a fund to address loss and damage associated with the adverse effects of climate change.

The purpose of the Fund is to assist particularly vulnerable developing countries in responding to economic and non-economic loss and damage associated with the adverse effects of climate change, including extreme weather events and slow onset events. As a new channel for multilateral finance, the Fund seeks to provide new, additional, predictable, and adequate financial resources to developing countries that are particularly vulnerable to the adverse effects of climate change and assist in mobilising external finance to address loss and damage, while supporting achievement of sustainable development and the eradication of poverty.

“The Fund is expected to be operationalised over the coming months with final approvals to be made at COP29. The World Bank has been asked to confirm to the COP28 Presidency by early June 2024 that it is willing and able to meet the stipulated conditions and to submit to the Fund’s Board by early August 2024 relevant FIF documentation, including a hosting agreement,” World Bank said on its website.

On whether the World Bank will be an implementing entity, it has said the Fund’s board will decide if the World Bank will be one of the implementing entities.

Harjeet Singh, global engagement director, Fossil Fuel Treaty Initiative and a climate activist who has been following the Loss and Damage negotiations, said, “As the World Bank gears up to serve as the Trustee and host of the new Loss and Damage Fund, it’s important to acknowledge that developing nations were essentially compelled into this agreement. With a track record of prioritising interests contrary to those of developing countries, including substantial investments in the fossil fuel sector — a primary driver behind the climate crisis — the World Bank lacks the legitimacy for the role it purports to undertake. This arrangement should be considered only a provisional measure.

“It’s imperative that the Loss and Damage Fund operates with complete autonomy during its decision-making and implementation phases, ensuring no undue influence undermines its objectives. The transition towards a fully autonomous entity, endowed with its own legal identity, is crucial for addressing current and future climate challenges effectively.”

HT reported on October 26, 2023 that fourth meeting of the Transitional Committee on Loss and Damage Fund in Aswan, Egypt ended without a clear consensus on operationalising the Fund , exposing a deep trust deficit among rich and emerging economies over historic responsibility, climate reparations and making money available for compensation.

The Third World Network (TWN), which was tracking the Aswan meeting, said that developed countries took a rigid position on three issues, the primary one being the location of the Fund. According to TWN, a non-profit international research and advocacy group, developed countries pushed for the Fund to be hosted by the World Bank, a demand rejected by developing countries.

Thereafter on November 4, 2023 HT reported that developing countries indicated that they are agreeable to locating the Loss and Damage (L&D) Fund in the World Bank but for a pre-determined interim period following which it would become an independent entity .

On November 5 , although a text was adopted on operationalising a global Loss and Damage Fund, the US insisted that it should be made clear that contributions to the Fund were voluntary. An agreement to operationalise the Loss and Damage Fund was finally made at COP28 in Dubai last December.

“As part of that decision, the World Bank was invited to “operationalise the Fund as a World Bank hosted financial intermediary fund (FIF) for an interim period of four years”. The role of the World Bank will be to host the Fund secretariat, and to provide trustee services for the Fund,” World Bank added on its website.

Catch every big hit, every wicket with Crickit, a one stop destination for Live Scores, Match Stats, Infographics & much more. Explore now!

See more

Get Current Updates on World News, US News , Hollywood News , Anime and Top Headlines from around the world.

SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Tuesday, July 16, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On