The Santiago Network on Loss and Damage (SNLD) is tasked with averting, minimizing, and addressing the loss and damage caused by the escalating climate crises globally. As the impacts of climate change continue to increase in both frequency and intensity, the needs of developing countries and vulnerable communities have become more urgent and visible.

SNLD is a key component of the United Nations Climate Change Convention (UNFCCC) and the Paris Agreement, designed to help developing countries manage the adverse effects of climate change. The Santiago Network was established under the Warsaw International Mechanism (WIM) for loss and damage at COP25 as a response to the urgent need for action and support in addressing loss and damage.

Following the declaration of a loss and damage fund at COP28 in December 2023, which saw various parties make pledges, the Santiago Network has been working on operationalizing this fund. The second Santiago Network Advisory Meeting (SNAB2), held from July 2-4, made significant progress toward the full operationalization of the SNLD.

The meeting focused on critical steps to ensure the network can effectively mobilize technical assistance from organizations, bodies, networks, and experts (OBNEs) to implement relevant strategies for averting, minimizing, and addressing loss and damage at local, national, and regional levels in developing countries most vulnerable to climate change.

“The work toward full operationalization of the SNLD is advancing, but much remains to be done,” according to a statement from the SNAB2.

As the third meeting in Bonn, Germany, from September 3-6 approaches—likely the last Santiago Network meeting before COP29 in Baku, Azerbaijan—the team is rushing to resolve contentious issues surrounding the fund’s operationalization.

“We expect this open and transparent approach to continue not only within the Advisory Board but also to evolve, including a broad range of observers and OBNEs as part of the network,” the statement added.

With COP29 fast approaching and no clear timeline for subsequent Advisory Board meetings, the Board must assess progress and consider how to ensure the full operationalization of the loss and damage fund.

Recommendations from Santiago Network Advisory Board Meeting 2:

1. Director Selection and Secretariat Establishment: The Director of the secretariat must be publicly confirmed, followed by staff recruitment to end interim secretariat arrangements and establish a permanent secretariat in Geneva, with regional and subregional UN offices in all geographical regions.
2. Conflict of Interest Guidelines: The draft guidelines on preventing and addressing conflicts of interest within the Santiago Network are crucial and must be urgently finalized, based on best practices and relevant lessons learned.
3. Advisory Board Rules of Procedure: The Rules of Procedure for the Advisory Board must be finalized and recommended at the sixty-first session of the subsidiary bodies (SB61) in November 2024 for adoption at COP29 and CMA6, as required by the Dubai COP28 decision. These rules are vital for the smooth and effective functioning of the Advisory Board.
4. OBNE Membership: The guidelines on the designation of OBNEs as network members must be discussed further, ensuring the inclusion of a broad, diverse membership, including OBNEs at local, national, and regional levels in developing countries.
5. Technical Assistance Guidelines: The draft guidelines and procedures for responding to technical assistance requests, including urgent responses, must be approved at the third meeting. Their adoption will streamline the process for countries seeking technical assistance.
6. Interim Secretariat Support: The interim secretariat must continue supporting developing countries in accessing technical assistance, advancing requests such as that from the Republic of Vanuatu, and proactively encouraging further requests until the permanent secretariat is operational.
7. Regional Workshops: The SNLD should build on the 2023 regional scoping workshops to update developing countries on the network, enhance their ability to access technical assistance, and identify practices, capacity gaps, and needs.
8. Funding Management Guidelines: Guidelines for managing funds must ensure a partnership-based approach, impartial and transparent administration, and adherence to the SNLD mandate. A minimum percentage of technical assistance funds must be allocated directly to communities based on their needs.
9. High-Level Dialogue Participation: The SNLD’s role in the high-level dialogue on coordination and complementarity should be explored further, considering its intended launch at COP29. The Advisory Board must seize this opportunity to promote the SNLD in global fora.
10. Annual Report: The SNLD’s annual report must comprehensively and accurately detail the activities of the Santiago Network secretariat and provide recommendations for the continued success of the SNLD and the 2024 review of the Warsaw International Mechanism (WIM) at COP29.
11. Strategy and Budget Adjustments: The strategy, results framework, and multi-year budget must be reconsidered under the guidance of the Advisory Board and Director, not driven by donors. These documents should be carefully reviewed before approval.
12. Finalizing Pledges: The outstanding contribution agreements for approximately USD 40.7 million in pledges must be finalized to complement the USD 7.8 million already received.
13. Transparency in Funding: Transparency regarding the receipt of pledges and other support, including from the host consortium and host country of the head office, is essential. Switzerland’s pledge, based on its successful proposal to host the Santiago Network secretariat, must be disclosed as the permanent secretariat is established.
14. Resource Mobilization Strategy: The Advisory Board must develop a resource mobilization strategy to ensure new, additional, predictable, and adequate funding for the network, enabling it to expand its reach and provide demand-driven technical assistance to all developing countries that request it.
15. Budget Allocation: The annual and multi-year budgets (if approved) must allocate the majority of funds toward technical assistance. Particular attention should be given to the management fee of the host consortium, especially in light of concerns regarding its increase from 3.76% to 4.18% between the host proposal and the signing of the Memorandum of Understanding.