Azerbaijan’s leadership at COP29 ushers in milestone for Loss and Damage Fund

COP29 has made a landmark decision to fully operationalize the Loss and Damage Fund, a development long anticipated by developing nations, including small island states, least-developed countries, and African nations.

This milestone reflects a priority highlighted by Azerbaijani President Ilham Aliyev, who emphasized the urgent need to address climate change's devastating impacts on small island states under COP29’s presidency, Caliber.Az reports. 

Journey of the Loss and Damage Fund

The Loss and Damage Fund was initially established at COP27 in Egypt to provide financial support to countries most affected by the climate crisis. At COP28 in the UAE, a decision was made to launch the Fund.

Under Azerbaijan's leadership at COP29, critical steps were taken to make the Fund fully functional. These efforts included close collaboration with the Fund's Board and the World Bank.

In September, the third meeting of the Fund's Board was hosted in Baku, where significant progress was made. During this meeting, key operational milestones were achieved, including the appointment of Ibrahima Cheikh Diong as the Fund's Executive Director.

Key Agreements Signed

At COP29, several vital agreements were finalized to ensure the smooth functioning of the Loss and Damage Fund:

• A Trusteeship Agreement between the Fund’s Board and the World Bank.
• A Secretariat Hosting Agreement.
• A Host Country Agreement with the Republic of the Philippines.

To date, pledged contributions to the Fund exceed $730 million, paving the way for its activities to commence. With these achievements, the Fund is set to begin financing projects in 2025, marking a pivotal victory for global climate action.

A Notable Legacy

This accomplishment underlines Azerbaijan’s successful leadership during COP29, as the Loss and Damage Fund represents a critical mechanism to support the world’s most vulnerable countries in mitigating and adapting to the growing impacts of climate change.

By Tamilla Hasanova