Fund for loss and damage opens first call, but the money falls far short of needs

At the centre of this new phase is the Barbados Implementation Plan (BIM), a detailed framework outlining how the FRLD will operate, receive, and distribute funds.

Under the BIM, developing countries can submit project proposals between mid-December 2025 and mid-June 2026, with the first approvals expected in July 2026.

An initial $250 million (Sh625 billion) has been allocated to support projects addressing climate-induced loss and damage, including destroyed infrastructure, displaced communities, damaged ecosystems, and cultural heritage.

“This first call for proposals will help test, learn, and shape the fund’s long-term operating model,” said FRLD Co-Chair Jean-Christophe Donnellier, adding:

“It is an important signal to developing countries that support is now available.”

Tanzania and other African voices

During the official launch of the BIM, Tanzania’s Special Envoy and Advisor to the President on Environment and Climate Change, Dr Richard Muyungi, said the move marks both real progress and a test of global solidarity.

“We welcome the launch of the BIM because it represents significant progress,” said Dr Muyungi, adding, however, that current estimates for economic losses in 2025 alone range from $128 billion to $937 billion (Sh500 billion to over Sh2.3 trillion).

He emphasised that COP30 must go beyond symbolic pledges and secure firm political commitment for “significant capitalisation” when the FRLD begins its first replenishment cycle in 2027.

The Least Developed Countries (LDC) Group, representing 44 nations across Africa, Asia-Pacific, and the Caribbean, echoed this call in a joint statement urging “rapid, direct, and effective disbursement” of resources to countries already facing climate-induced devastation.

The group also welcomed the decision to start the replenishment process by 2027, noting that predictable funding cycles are vital to meeting the escalating needs of vulnerable nations on the climate frontline.

Civil society pushes for greater ambition

Youth and gender activists say that while the FRLD’s operational launch is historic, the scale of available funding remains far from sufficient.

Director of Hudefo and Lead Coordinator for Youth and Gender within the AGN, Ms Sarah Pima, said the fund’s current resources “represent only a fraction of what is required.”

“Climate disasters are escalating, yet we are talking about millions when losses already run into hundreds of billions,” she said, citing Hurricane Melissa, which recently caused an estimated $7 billion in damages across Jamaica and the Philippines.

FRLD Executive Director, Ibrahima Cheikh Diong, acknowledged the funding gap but assured that efforts to mobilise additional financing are underway.

“We are aware that $250 million is not enough. But this first phase will help us learn, adjust, and attract more partners to scale up resources,” he said.

A long-awaited step towards climate justice

The move has been welcomed across Africa and other developing regions as a long-awaited sign of progress in the global push for climate justice.

The Least Developed Countries (LDC) Group Chair, Mr Evans Njewa, called it “a practical step toward justice, long awaited by communities on the frontlines of the crisis.”

He added that the fund must deliver “fast, simple, and accessible support with fair and flexible conditions for countries facing the harsh realities of climate change.”

However, despite the celebration, experts warn that the available resources are drastically below what is required.

A report by the Independent High-Level Expert Group on Climate Finance estimates that developing countries could need between $200 billion and $400 billion annually by 2030 to address loss and damage.

Yet so far, donor nations have pledged just $788 million, less than 0.2 percent of the annual requirement.

Of that amount, only $583 million has been converted into contribution agreements, and less than $400 million has been disbursed.

The numbers behind the fund

Under the BIM, the FRLD will accept proposals for projects worth between $5 million and $20 million.

However, given the limited $250 million pool, only a handful of proposals can be financed.

Experts urge developing nations to submit as many proposals as possible, arguing that oversubscription would send a strong political signal to scale up the fund.

If not replenished swiftly, the fund could run dry by 2027, as its remaining reserves of about $157 million would be insufficient to sustain new commitments.

Analysts warn that developing countries collectively need at least $400 billion annually to address loss and damage, while scientific estimates suggest global economic losses from climate impacts could reach $395 billion in 2025 alone.

For now, the FRLD’s opening call represents a small but symbolic step forward.

The real challenge, observers say, lies in ensuring that “the fund’s promises turn into tangible support for the world’s most vulnerable.”