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Operationalizing the Loss and Damage Fund: learning from the perspectives of funders and potential recipients

This brief summarizes key points from recent research conducted to examine ways for the new Loss and Damage Fund to best achieve its aim of helping vulnerable countries respond to and recover from climate impacts.

Zoha Shawoo, Inès Bakhtaoui / Published on 28 August 2023
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Citation

Shawoo, Z., Bakhtaoui, I., Schultheiß, L., Naushin, N., & Ahmed, L. (2023). Operationalizing the Loss and Damage Fund: learning from the perspectives of funders and potential recipients. SEI brief. Stockholm Environment Institute.

Flooding in Bangladesh.

Photo: Muhammad Amdad Hossain / Getty Images

Key findings from the research:

  • The fund must be set up and operated in ways that are fair and are perceived as being fair by donor and recipient communities.
  • Though there is no single, correct way to operationalize the fund, it is vital that the fund is transparent about how it will set priorities, navigate trade-offs, and determine who will participate in making key decisions.
  • In addition to supporting both immediate and longer-term recovery, the fund must find ways for finance to reach local levels so that it can be used by communities most affected by loss and damage according to their own needs and priorities.
  • Operationalizing the fund will require carefully considering four key trade-offs: whether to establish a wide financial scope for the fund itself or to focus on increased coordination among other funders; whether to emphasize participatory governance or devolved approaches; whether to prioritize decision-making processes that are inclusive or faster; and whether to prioritize greater accessibility or stronger oversight.
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Read the brief / PDF / 1 MB

SEI authors

Topics and subtopics
Governance : Finance, Geopolitics
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