Staff Writer
In a landmark decision, the World Bank’s Board of Executive Directors has greenlit the bank’s role as the interim host and trustee for a newly established fund aimed at addressing loss and damage caused by climate change in developing countries.
This move comes after a historic agreement at COP28, where 198 nations pledged to create a dedicated financial mechanism to assist vulnerable countries grappling with the devastating consequences of climate change.
The fund will provide much-needed support to developing nations, many of whom bear the brunt of climate impacts despite contributing minimally to greenhouse gas emissions. These impacts include rising sea levels, extreme weather events, and disruptions to agriculture, all of which threaten livelihoods, infrastructure, and overall development.
The World Bank will act as the interim secretariat for a period of four years, managing the fund’s operations and overseeing the distribution of resources. This signifies a critical step towards operationalising the fund and delivering tangible assistance to those most affected by climate change.
“The World Bank welcomes the Board’s decision and the role of the new fund in providing both much needed support and hope to poor and vulnerable people and communities in countries hardest hit by climate impacts,” the World Bank said in a statement.
While details regarding the fund’s structure and eligibility criteria are yet to be finalised, the agreement represents a major win for developing nations who have long advocated for such a mechanism.
The success of the fund will hinge on securing sufficient financial contributions from developed countries. Negotiations on this front are expected to continue in the coming months.
