One year after the launch of the loss and damage fund at COP28, progress is stalling. Daniel Adeniyi delves into the challenges facing the fund and argues that the EU, as its main contributor, must address the 99% funding gap through higher contributions, innovative funding mechanisms and prioritising climate justice politically.
Summary
More than a year after the launch of the loss and damage fund at COP28, it is clear that existing financing mechanisms are insufficient to address the challenges at the scale required. Financial commitments made at COP29 remain well below the $400 billion needed annually. In Africa alone, the need is staggering, with between $290 billion and $440 billion required until 2030 to finance these efforts. The failure of the New Collective Quantified Goal on Climate Finance (NCQG) to include concrete provisions for financing loss and damage further threatens to erode progress and intensify climate diplomacy tensions.
The EU and its member states are the largest contributors to the loss and damage fund. Yet, addressing the 99% funding gap will require substantial scaling of contributions and additional resources through innovative funding mechanisms that align with the principles of climate justice — ‘polluter pays’, fairness, transparency and adequacy. But it is unclear whether this will change in the near future. Political barriers continue to outweigh potential gains, suggesting that the agenda is likely to remain in a fragile state.
To move forward, the EU must encourage stronger institutional arrangements, support locally-led initiatives, and prioritise climate justice. Enhanced EU-AU engagement could play a pivotal role in overcoming multilateral deadlocks. At its heart, addressing loss and damage is not just about technical solutions or financial tools; it is a profoundly global political challenge. Real progress will depend on prioritising loss and damage at the highest political levels and demonstrating a collective commitment to decisive action in the face of shared climate risks.
About the Author
Daniel Adeniyi is a policy officer in ECDPM’s sustainable food systems and climate action and green transition teams.