Historic Fund will assist developing countries hit by adverse effects of climate change.
WASHINGTON, June 10, 2024-The World Bank's Board of Executive Directors today approved the World Bank's role as interim secretariat host and trustee of a fund for responding to loss and damage caused by climate change.
In a historic decision at COP28, an agreement was reached by 198 countries to move forward with a fund to provide financial support to vulnerable countries hardest hit by climate impact. Since COP28, the World Bank has worked with urgency to operationalize the Fund as a World Bank hosted financial intermediary fund (FIF) for an interim period of four years. Today's decision represents a major milestone on the path towards operationalizing the Fund, in collaboration with the Board of the Fund for Responding to Loss and Damage.
The World Bank welcomes the Board's decision and the role of the new Fund in providing both much needed support and hope to poor and vulnerable people and communities in countries hardest hit by climate impacts.
Additional Information: The Fund Board is independent from the World Bank and has its own governance structure. It will determine key priorities, including financing decisions, eligibility criteria, and risk management policies. The Fund is expected to be operationalized over the coming months. As Trustee, the World Bank will not play any role in fundraising, making funding allocation decisions or in the identification, preparation, appraisal, implementation or monitoring of projects financed by the Fund. Implementing entities and direct access recipients will remain solely accountable for the end use of funds, including with respect to fiduciary, environmental and social aspects, vis-à-vis the Board of the Fund.
