At COP29, a decision was made to ensure the full operationalization of the Fund for responding to Loss and Damage, a long-awaited initiative by developing countries, including small island states, least developed countries, and African nations.
This aligns with the priority set by the President of the Republic of Azerbaijan, Ilham Aliyev, to address the challenges posed by climate change impacts on small island states under Azerbaijan's COP29 Presidency.
The establishment of the Fund for responding to Loss and Damage was agreed upon during COP27, held in Egypt. The Fund aims to provide financial assistance to countries most vulnerable to the impacts of climate change.
During COP28 in the United Arab Emirates, a decision was made to launch the Fund's operations. Under the COP29 Presidency, significant steps have been taken to ensure its operationalization, with close collaboration between the Fund's Board and the World Bank.
In September of this year, during the Fund's third Board meeting held in Baku, critical measures were implemented to commence its operations, including the appointment of Ibrahima Cheikh Diong as the Fund's Executive Director.
Within the framework of COP29, several important agreements related to the Fund were signed, including the "Trustee Agreement" and the "Secretariat Hosting Agreement" between the Fund's Board and the World Bank, as well as the "Host Country Agreement" between the Fund's Board and the Republic of the Philippines.
To date, the total pledged financial support for the Fund exceeds $730 million. With these achievements, the Fund for responding to Loss and Damage will be able to begin financing projects starting in 2025. This marks yet another success of Azerbaijan's COP29 Presidency.