Norwegian Prime Minister Jonas Gahr Støre announced at the UN climate summit (COP28) in Dubai that Norway will provide NOK 270 million to the new fund for loss and damage associated with climate change (Loss and Damage Fund).
The decision to establish the fund was agreed on at COP27 in Sharm el-Sheikh last year. Over the past year, a committee in which Norway has been represented drew up recommendations regarding the design and operation of the fund. These recommendations have now been adopted by the parties to the UN Climate Change Convention and the Paris Agreement.
– It is very encouraging that we have reached agreement on how to operationalise the fund. Loss and damage due to the adverse effects of climate change is a problem that will unfortunately continue to grow in the future. I am pleased that Norway is able to pledge early financing for the fund, said Prime Minister Jonas Gahr Støre.
The new fund will provide assistance to developing countries that are particularly vulnerable to climate-related events and disasters, for instance the impacts of man-made climate change such as rising sea levels, and extreme weather events such as storms and flooding. The fund will be closely aligned with existing funding mechanisms in a manner that will promote adequate coordination between the various forms of support, for example in humanitarian efforts.
– We have worked to ensure that the new fund will provide support to the most vulnerable developing countries, such as the least developed countries and small island developing states. I am pleased that our efforts have succeeded, said Minister of International Development Anne Beathe Tvinnereim.
– The new fund will be a supplement to our existing initiatives in the areas of climate adaptation, disaster risk reduction and food security. There is no one fund that will be able to address the challenges we face in the future on its own, so it will be essential to ensure coordination with and strengthening of existing institutions, said Ms Tvinnereim.
The World Bank will be responsible for administering the fund, which will appoint a designated board of directors and secretariat. The board will consist of 26 representatives from industrialised and developing countries. The work to operationalise the fund is planned to begin early next year.