Dubai, United Arab Emirates – The Philippines lauds world leaders for agreeing to make operational the Loss and Damage Fund to compensate and support vulnerable countries in addressing the irreversible impacts of climate change. The landmark deal was forged on the first day of the 28th Conference of Parties to the United Nations Framework Convention on Climate Change (COP28), setting a positive start to the global climate talks.

The Philippines, along with other developing nations, has been pushing for the creation of a loss and damage fund to respond to the adverse impacts of climate change, noting that while the carbon emission of developing countries is miniscule versus global levels, it is disproportionately affected by extreme weather events.

President Ferdinand R. Marcos, Jr, said the Philippines is pushing for loss and damage financing and a just transition. The country also expressed its intent to host the Loss and Damage Fund during the World Climate Action Summit.

“The Philippines calls for the immediate operationalization of this Fund to assist developing and vulnerable countries to respond to droughts, floods, and rising sea levels exacerbated by climate change,” said Marcos in his message delivered by Special Assistant to the President Antonio Lagdameo Jr.

“We urge our partners from the private sector, civil society, partner countries and governments, and development funding institutions to support the Philippines in this bid,” Marcos added, “You have been there for meaningful collaboration with our government to tackle the climate crisis.”

“Operationalizing the loss and damage fund is important for us, and this was a hard-fought outcome that would enable us to catalyze assistance for the irreversible impacts of climate change such as extreme weather conditions and slow-onset events which are beyond our ability to finance,” said Environment and Natural Resources Secretary Maria Antonia Yulo Loyzaga, Official Representative of the President to the Climate Change Commission and the Head of the Philippine Delegation to COP28.

In an earlier interview Secretary Loyzaga noted that while the Fund is a milestone for global climate action, it is important to ensure that the loss and damage fund is accessible, and can be tailored to specific needs of each country. “It is a very encouraging sign that developed countries are beginning to recognize common but differentiated responsibility and respective capacity. And we want to be at the forefront of that. The President has announced that the Philippines will pursue the hosting of the Loss and Damage Fund Board and we hope to be able to also have a seat on that Board.”

Following adoption of the agreement to operationalize the fund, several countries pledged over USD270-million for its start-up phase. The fund is designed to receive contributions from a wide variety of sources, with the World Bank initially hosting it, subject to review after four years.

Earlier, COP28 President Sultan al-Jaber said the United Arab Emirates would commit USD100 million to the fund; Germany pledged USD100 million; the United Kingdom, USD50.5 million; Japan, USD10 million; the United States, USD17.5 million; and the European Union pledged USD225 million, which includes Germany’s contribution.

Loyzaga earlier said that what is also important is the loss and damage fund may be broadly based. “So not just the developed countries, there may be opportunities for the International Financial Organizations. There may be opportunities for private sector philanthropies to actually also contribute to this fund. All of this is part of what will be negotiated now in this COP.”

“We are open to broadening the sources and that’s where the use of private sector funding, the use of innovative financing from the different international financial organizations is actually the most important as well,” Loyzaga said.

Article 8.1 of the Paris Agreement states “Parties recognize the importance of averting, minimizing and addressing loss and damage associated with the adverse effects of climate change, including extreme weather events and slow onset events, and the role of sustainable development in reducing the risk of loss and damage.”

COP28 will run from November 30 to December 12, 2023 at the Dubai Expo City. The full program, daily agenda, and list of partners for the COP28 Philippine Pavilion can be viewed at https://cop28ph.denr.gov.ph. Events will be live-streamed and available on the website and DENR social media pages.###