‘The need is too big, the available funding is too limited’
Tuesday 12 August 2025 | 18:30
Fund for responding to loss and damage call for proposals expected in the coming months.
The global need to address climate-related loss and damage far outweighs the funding currently available, says the Fund for Loss and Damage (FRLD) programming and country engagement lead.
Speaking to participants of the SPREP’s Pacific Loss and Damage dialogue in Apia, Samoa, Jihyea Kim said the FRLD has so far secured about US$768 million in early pledges, “a drop in the ocean” compared to the scale of needs.
Just US$250 million is set aside to be disbursed for the fund’s initial two-year start-up phase.
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Its start-up phase, called the Barbados Implementation Modalities, will pilot grant-based interventions from 2025 to 2026, with at least 50 per cent allocated to Small Island Developing States and Least Developed Countries.
The fund’s approach will be country-led and inclusive of communities, civil society, and non-state actors, with an emphasis on building on existing national systems rather than creating new ones.
A call for proposals is expected in the coming months.
However, the programme lead cautioned that funding will be limited in the early phase, making prioritisation essential.
“This fund cannot operate alone in supporting countries. The need is too big, and the available funding is too limited,” Kim said.
She stressed the importance of complementing existing disaster, climate, and humanitarian financing.
Established to assist developing countries most vulnerable to climate change, the FRLD is the only multilateral climate fund dedicated to both economic and non-economic loss and damage.
About the Fund
The Loss and Damage Fund is a financial mechanism designed to assist vulnerable developing countries in addressing the impacts of climate change, including both economic and non-economic losses. Established at COP27 in Sharm el-Sheikh, Egypt, the fund was operationalised at COP28 in Dubai.
It aims to provide crucial financial support to help these nations recover from climate-related disasters, from sudden events such as extreme weather to slower-onset changes like rising sea levels.
