The Philippines hosted the 4th Board Meeting of the Fund for Responding to Loss and Damage (FRLD) at the Philippine International Convention Center in Pasay City, Philippines on 2-5 December 2024. The meeting brought together government representatives, civil society organizations, and representatives from women, youth, and Indigenous Peoples constituencies to discuss the Fund’s strategic direction.
The FRLD, established at the UN Framework Convention on Climate Change (UNFCCC) Conference of Parties (COP) 27 and operationalized at COP 28, is mandated to provide assistance to vulnerable developing countries in responding to economic and non-economic loss and damage associated with the adverse impacts of climate change. During the meeting, several issues were discussed but some of the agenda were relatively relevant to Indigenous Peoples.
Ibrahima Cheikh Diong, executive director of the FRLD, presented key strategic priorities for the Fund's initial intervention for 2025-2026. These included the development of country-led national strategies for responding to loss and damage, which would be tailored to each country's specific needs and aligned with their national recovery plans where applicable. He added the importance of enabling rapid disbursement of funds for climate-induced extreme weather events, stressing the goal of leveraging existing national and regional mechanisms to maximize impact. This approach is hopefully designed to ensure efficient fund allocation while complying with high fiduciary standards and adhering to environmental and social safeguards.
Diong also emphasized the need to develop and leverage existing small grant programs and facilitate direct deployment of grants to vulnerable communities and populations, including Indigenous Peoples. This is to prioritize locally-led initiatives and enhance community capacity to respond and address loss and damage while supporting their livelihoods.
The Board also adopted a “blanket approach” for accrediting observers, simplifying the process for organizations accredited by the UNFCCC, other operating entities of financial mechanisms of the Convention, the Adaptation Fund, the Special Climate Change Fund, and the Least Developed Countries Fund. This approach will be applied for an interim of two years and not more than three years and until a comprehensive framework for overall engagement of observers is developed.
A proposal to include the private sector as an active observer in the Fund's governance was opposed by the civil society organizations (CSOs). They argued that such inclusion could prioritize corporate interests over the needs of vulnerable communities, and that it is not reflected in the governing instrument of the Fund. The Board postponed the adoption of the active observer policy and requested the secretariat to conduct further consultations with the nine constituencies of the UNFCCC and other stakeholders on the matter.
The meeting also discussed the first annual High-Level Dialogue on Complementarity and Coherence of Funding Arrangements. This is set to happen in April 2025 in Washington, D.C. The annual dialogue provides another platform of engagement for indigenous groups to advocate for greater alignment between the Fund's objectives and their priorities and needs in addressing loss and damage.
On the sideline of the formal meeting, Indigenous Peoples’ representatives participated in a dialogue with the Board. They shared valuable insights from their experiences with direct finance, highlighting the Pawanka Fund and the International Fund for Agricultural Development (IFAD) of the Food and Agriculture Organization (FAO). These facilities were presented as examples of models that the Fund can learn from for a better community access modality.
As the Fund continues to evolve, the discussions held in the Philippines provided a view of its strategic future direction. CSOs, including Indigenous Peoples and other right-holder groups, are expected to remain engaged in shaping the Fund’s overall framework to ensure that it effectively addresses and responds to loss and damage experienced by most vulnerable populations. The next Board meeting is scheduled to take place on 8-10 April 2025 in Barbados.