Developing country representatives on the Board of the UN’s Fund for Responding to Loss and Damage (FRLD) have issued a critical joint statement expressing deep concern over the scale and status of available financial resources.
This comes after the sixty-second session of the subsidiary bodies (SB62) concluded with little ambition shown regarding the Loss and Damage Fund. The representatives argue that a lack of transparency from contributing countries is “severely limiting” the Fund’s ability to program resources and is eroding trust in long-term partnerships.
The joint statement was issued during the Fund’s 6th Board Meeting, held in Cebu, Philippines, a location chosen for its symbolic and sobering reminder of the climate impacts experienced by vulnerable nations.
Claire Miranda from the Asian Peoples’ Movement on Debt and Development (APMDD) noted the significance of holding the FRLD Board meeting in Cebu, one of the cities hardest hit by Super Typhoon Rai in 2021. She added, however, that symbolism is not enough, stressing the urgent need for substance over rhetoric.
“We need to fill the fund,” said Claire.
Promises vs. Reality: The Glaring Finance Gap
While funding needs for economic damages alone are projected at around USD 395 billion in 2025, only USD 348 million is currently available in the Fund, despite total pledges of USD 788.68 million.
This stark gap highlights the discrepancy between pledges and actual disbursements, which continues to impede the Fund’s mission. It mirrors the outcome of COP29, widely referred to as the “Finance COP,” which failed to meet the developing nations’ call for USD 1.3 trillion to finance responses to climate shocks among the most vulnerable.
H.E. Jotham Napat, Prime Minister of Vanuatu, emphasized the need for negotiators to close the gap and respond with urgency, as climate extremes will not wait.
“A single cyclone caused over $500 million in damages, yet we are capped at receiving just $20 million a year from the Loss and Damage Fund. Pledges alone cannot rebuild what has been erased by the climate crisis in Vanuatu and across the world,” he said.
Daniel Lund of Fiji added that the issue goes beyond figures. “Our red line, the imperative to keep the global average temperature rise below 1.5 degrees, is on the brink of being breached. This must be a fund that works differently and thinks differently.”
From Start-Up to Scale-Up: A Call for Urgent Replenishment
The developing country constituency insists that by 2030, the FRLD should be programming at least USD 100 billion annually.
“We raise the question of whether the Board should now shift its priorities towards launching an initial capitalisation and replenishment process of new, additional, predictable, and adequate resources,” said Elena Cristina Pereira Colindres (Honduras), speaking on behalf of the G77.
Richard Sherman, Board Co-Chair representing South Africa, spoke of the technical groundwork still being laid.
“We have to build the abacus, so to speak, of the Fund’s financial architecture: how we mobilize money, how we bank contributed funds, and how we disburse money to countries… Although this is a small step, it has a big, big, big footprint.”
Ambassador Elizabeth Thompson of Barbados reminded attendees of the urgent need for accessibility, particularly for middle-income nations.
“When Hurricane Beryl struck us, we lost 90% of our fishing fleet and significant coastal infrastructure. That is why the Board’s decision in Barbados this past April, to allocate 50% of funding to LDCs and SIDS as grants, not loans, was so critical.”
“Fill the Fund”: Global Campaign Pushes for Accountability
In parallel with the Board meeting, a new civil society campaign, “Fill the Fund,” was launched by a coalition of climate justice groups worldwide.
The campaign seeks to hold wealthy nations and corporate polluters accountable for their historical responsibilities and calls for the delivery of new, grants-based, and accessible finance.
Harjeet Singh, campaign convenor and Director at Satat Sampada, emphasized the campaign’s mission:
“The creation of this Fund was a historic victory, but it will be a meaningless one if it is not filled. The ‘Fill The Fund’ campaign will unite the voices of thousands of organizations to demand that developed countries stop shirking their responsibilities.”
Tasneem Essop, Executive Director of Climate Action Network International, was unequivocal: “With increasingly devastating climate impacts, we are talking billions, not millions… You cannot profit from suffering. Rich nations must pay their dues.”
Activists also criticized financial institutions for failing to push wealthy nations harder, including the Multilateral Development Banks, DFIs, among others. “The attempts by the World Bank to get the private sector involved in financing the Fund are yet another escape clause for rich nations,” added Essop.
“This has never been about a lack of resources; it has always been about a lack of political will,” echoed Brandon Wu of ActionAid USA.
A Human Rights and Legal Imperative
Beyond finance, the issue was framed as a matter of justice and human rights that have to be attained for the most vulnerable communities who are on the frontline, losing lives and livelihoods. For them, the argument is that they are reliant on this financing to be able to cope and respond to the unprecedented eventualities of climate change.
Brenda Mwale from the Loss and Damage Collaboration would point out that adequate funding is not merely a financial necessity, but rather it constitutes a legal and moral imperative. Her call emphasized that parties should meet at least USD 400 billion annually.
“The response to COVID-19 demonstrated the capacity and availability of resources… The money is there!” said Brenda.
Liane Schalatek of the Heinrich Böll Foundation echoed this urgency, saying that only $358 million is in the bank when at least that number in billions is needed per year.
“No more excuses and evasions. If countries in the Global North can find money for military expansion and subsidising fossil fuels, they can summon the resources to #PayUp4LossAndDamage-NOW!” added Liane.
The Youth Perspective: “An Empty Fund Means Broken Homes”
To streamline conversations and make meaningful discussions that incorporate youth voices, the Loss and Damage Youth Coalition emphasized the real-world consequences of inaction.
In a statement, the coalition reiterated that an empty Fund means more droughts, floods, and temperature extremes. “It means broken homes, displaced families, and unchecked destruction… These funds are neither charity nor investment opportunities. They are meant for equitable climate action,” the statement read.
Chiara Liguori from Oxfam GB echoed this sentiment: “What would be historic now is for rich countries to honour their obligations and pay up for the losses and damages they have caused.”
As global attention shifts toward COP30 in Belém, Brazil, pressure is mounting on developed countries to demonstrate meaningful climate leadership.
“2025 is the year to change this,” said Lien Vandamme of the Center for International Environmental Law. “The delay must end, and polluters must pay.”
Dr. Isatis Cintron-Rodriguez of Climate Trace reinforced this call for urgency: “Trust is the currency of climate justice. Anything less than new, additional, and non-debt-inducing finance risks turning a promise into betrayal.”
As the FRLD Board continues its work and civil society intensifies global pressure, one message rings loud and clear from Cebu to capitals across the Global North: promises are no longer enough.
“Fill the Fund” is not just a slogan; it is a demand grounded in justice, legality, and survival.
