Key decisions taken at the 7th meeting of the Board (B7) of the Fund for responding to Loss and Damage (FRLD)
The seventh meeting of the Board (B7) of the Fund for responding to Loss and Damage (FRLD) has concluded in Manila in the Philippines with the operationalisation of the Barbados Implementation Modalities (BIM) — the start-up phase that gets the Fund up and running.
Although B7 marks the official start of the Fund’s new phase — the BIM — it also feels like the end of an era. Many Board members are stepping down, and new Co-Chairs will soon be chosen to lead the next chapter in 2025.
Key highlights of the B7 outcomes
The Good News
Four key decisions were taken to make the operationalisation of the BIM possible:
1. How projects will be chosen
The adoption of a funding criteria for the BIM to guide the Secretariat of the FRLD in their assessment of funding proposals.
2. When and how money will flow
The adoption of a funding cycle for the BIM to guide the Secretariat of the FRLD in the management of funding proposals.
3. Who gets the money and how
A decision on access modalities, which has determined how developing countries will receive money from the FRLD.
4. Who can deliver the projects
The adoption of a list of implementing entities that are accredited to the Green Climate Fund (GCF), Global Environment Facility (GEF) and Adaptation Fund (AF) based on the modalities agreed under the decision on access — these implementing entities will be eligible to implement projects and programs for countries and enable direct budget support*.
*If this can be enabled.
The Secretariat of the FRLD will now work to develop the guide book, terms of reference and template for the call for proposals for the BIM.
The call for proposals will then be launched at COP 30 in Belém, Brazil .
The Bad News
The BIM fails short in a number of ways:
It is slow and complicated
Replicating the traditional model used other climate funds such as the Green Climate Fund (GCF), one that is slow and full of burdensome bureaucracy.
No quick-response system
Failing to put in place a dedicated mechanism to demonstrate rapid disbursement of funds to address loss and damage caused by extreme events such as wildfires, floods and cyclones.
No simple way for local communities to receive small grants directly
Failing to put in place a dedicated mechanism to demonstrate direct access to small grants for communities.
No long-term plan to raise new money
Crucially failing to put in place a long-term resource mobilisation strategy for the FRLD. With only a procedural decision being taken to request a draft resource mobilisation strategy to be prepared for B9.
Failing to deliver a resource mobilisation strategy risks the Fund running out of money in 2027 and seriously limits the possibility of allocating further money to the BIM at B8.
The World Bank’s spectre
Throughout B7, we also saw the spectre of the World Bank looms large as it became increasingly clear that Bank’s policies and processes are killing the potential for the FRLD to be an innovative and different Fund.
We will continue to fight for a FRLD that will enable those on the frontlines to thrive and not just survive in this moment of climate crisis.
We hope you will join us!
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Find the webcast for all three days of B7 here.
See all the documents released before and during B7 here*.
*Note that many decision texts will only be made available when the compendium of decision is released.
Join our mailing list here.
Join the campaign to Fill The Fund here.
Photo: FRLD Executive Director Ibrahima Cheikh Diong. Source: FRLD.
