ALLOCATING INTERNATIONAL LOSS AND DAMAGE FINANCE THROUGH NATIONAL CLIMATE FUNDS: PROSPECTS FOR AFRICAN LDCS

The new funding framework for loss and damage under the United Nations Framework convention on climate change (UNFCCC) highlights the necessity of supporting national systems, which poses unique challenges for African least developed countries (LDCs). These nations often struggle to access and effectively use international climate finance, particularly through direct means. National climate funds (NCFs) present a potential solution by aligning with national priorities and facilitating the delivery of international funding aimed at addressing loss and damage. NCFs are tasked with financing national climate strategies and managing various sources of climate finance, which can enhance institutional capacities, develop loss and damage strategies and ensure effective resource tracking. Despite the limited establishment of NCFs across African LDCs, existing funds show promise in channeling loss and damage funding, especially for climate adaptation and environmental rehabilitation initiatives. However, most NCFs currently lack the necessary mandates and skills to manage complex funding effectively and have limited integration with disaster risk finance. To maximize their potential, African LDCs need to establish comprehensive legislative and regulatory frameworks that define the roles of NCFs in responding to loss and damage, while also securing international support to bolster their institutional capacities.