New Global Climate ‘Loss and Damage’ Fund Names First Director

The Fund for Responding to Loss and Damage, aimed at assisting countries ravaged by climate-driven disasters, has appointed Ibrahima Cheikh Diong, a Senegalese finance specialist and dual U.S. citizen, as its first director.

The fund, created in 2022 under the United Nations Framework Convention on Climate Change (UNFCCC), is administered by the World Bank and represents a significant win for developing nations who have long pushed for support against climate disasters. Wealthy nations had resisted this fund, fearing it would lead to compensation demands for their greenhouse gas emissions.

Importance

With Diong’s appointment and the Philippines selected as the fund’s headquarters, the $800 million pledged at COP28 in Dubai last year can now be distributed. This progress is seen as critical ahead of the upcoming COP29 summit in Baku, Azerbaijan, where further financial contributions will be sought from countries.

Context

Loss and damage funding has been a highly contentious issue in U.N. climate negotiations, particularly between developed and developing countries. Developing nations argue that wealthier countries are responsible for much of the climate damage and should support those disproportionately affected by disasters such as rising sea levels and severe storms.

Key Quote

“The Fund for Responding to Loss and Damage will make a significant difference to those disproportionately affected, and I take this responsibility with humility and a full commitment to serve,” .