Launch of Loss and Damage Fund Signals Promising Opening to COP28

Today marks a historic step in addressing the impacts of climate change as countries agreed to activate the Loss and Damage Fund with an initial financial commitment of almost $300 million pledged by the United Arab Emirates, Germany, the United States, and Japan. As climate-vulnerable communities are disproportionately affected by the climate crisis, including  devastating droughts and floods in the Horn of Africa this year and last year’s deadly floods in Pakistan, the impacts of climate change on lives and livelihoods must be addressed. As world leaders convene in Dubai, Mercy Corps urges them to turn the Loss and Damage Fund from a promise into a genuine commitment, with historical emitters pledging significant new grants.

Debbie Hillier, Climate Advocate for Mercy Corps and the Zurich Flood Resilience Alliance, says:

“The historic agreement reached last year during COP27 to establish a Loss and Damage Fund reflects a longstanding priority for developing countries that have advocated for three decades on this critical issue. The implementation of the fund at COP28 marks an important first step but the agreement has numerous shortcomings and does not address climate justice.

“The decision text doesn’t refer to the scale of finance needed for addressing losses and damages and to the historic responsibilities of polluting countries to pay into the fund. Particularly problematic, the text refers to 'voluntary contributions,' which means that high-polluting countries are not obligated to pay into the fund. What should be responsibilities are perceived as donations, perpetuating the burden on those least responsible for climate change.

"The Fund’s host is envisioned to be the World Bank, at least for the first four years, yet the Bank has not yet agreed to key conditions to ensure the fund remains autonomous and accessible. If the World Bank does not confirm full compliance promptly, another host must be found.

"While the agreement to operationalize a Loss and Damage Fund is a significant achievement to start COP28, the hard work is just starting. Only once we see it well funded and fully functional in helping communities devastated by climate disasters should we consider it a success.

What is currently unfolding in the Horn of Africa, intense flooding after consecutive droughts, is a stark example of how the climate crisis is intensifying by the day and how the Loss and Damage fund could help communities and countries that contribute the least to greenhouse gas emissions respond to the devastating consequences of climate change."

Kunow Sheikh Abdi, Mercy Corps country director for Kenya, says: 

“The Horn of Africa continues to face an unprecedented humanitarian and climate crisis, shifting from a severe drought to heavy rain. Widespread floods in Kenya, Somalia, and Ethiopia have already displaced millions, causing extensive damage to major road infrastructure and devastating croplands, homes, schools, and hospitals. This crisis has compounded the already grave humanitarian situation, worsening hunger and malnutrition, and heightening risks of water-borne diseases.

“Rebuilding the livelihoods and assets that communities have lost will be a significant challenge due to limited funding and competition with other global crises. The Loss and Damage fund holds great potential to support the communities in the Horn of Africa and beyond, but only if it is properly funded and implemented.”

For more information please contact: 

• Roberta Alves (based in Washington, D.C.) at ralves@mercycorps.org
• Our full media team is reachable at allmediarelations@mercycorps.org