THE LOSS AND DAMAGE FUND AND THE 
IMF-WORLD BANK SPRING MEETINGS

As we look towards the first meeting of the Board of the Loss and Damage Fund (LDF/Fund)* this blog calls upon the World Bank to make known whether it can meet the conditions set out in the COP28 decision for it to become the interim host of the LDF secretariat during the 2024 International Monetary Fund (IMF) - World Bank Spring Meetings taking place in Washington D.C. from the 17th to the 19th of April. 

^{*The First Meeting of the Board of the Loss and Damage Fund has now been confirmed as taking place from the 30th of April to the 02nd of May 2024 in Abu Dhabi, in the United Arab Emirates.} 

‍ENCOURAGING THE WORLD BANK TO MAKE KNOWN ITS WILLINGNESS TO HOST THE FUND

In mid-March 2024, the World Bank created a webpage for the Loss and Damage Fund that contains an About page and an FAQ. On the About page the Bank provides an indicative timeline of the key steps it will take to meet the deadlines set in the COP28 decision for the Bank to operationalize the secretariat of the Loss and Damage Fund as a Financial Intermediary Fund (FIF). When introducing the timeline the World Bank notes these deadlines as falling in “early June 2024”, to confirm willingness to host the Fund to the COP28 Presidency, and “early August”, to submit to the Board of the Fund the relevant FIF documentation and a hosting agreement. 

The key steps indicated by the World Bank are as follows: 

However, as of the 11th of April 2024, the webpage does not explicitly confirm that the Bank is willing to host the Fund’s secretariat and no further announcements have been made. Therefore the IMF - World Bank Spring Meetings, provide an opportunity for Parties and civil society to put pressure on the World Bank to make known ahead of the first LDF Board meeting whether or not the Bank is willing to meet the conditions set out in the COP28 decision. 

Although the deadline for the World Bank to make know if it is willing is no later than within 6 months of COP28, if the World Bank were to make known that it is willing at the IMF - World Bank Spring Meetings it would send positive signals ahead of the first Board meeting that the Bank is ready to honour the COP28 decision and that the LDF will be set up as quick as the Bank has suggested. 

If the World Bank cannot or is not willing or able to meet the important conditions set in the COP28 decision, then the COP28 decision on the LDF is clear, a process will be kicked off to select a host country for an independent, standalone Loss and Damage Fund with an independent Secretariat, following confirmation by COP29. 

Ultimately, If the World Bank does not stick to its indicative timeline, tries to draw out the process and/or tries to find a way for it not to have the conditions resulting in the Board of the Loss and Damage rejecting the Bank as the interim host, affected communities will face further unacceptable delays which will result in more lost lives, homes and livelihoods as loss and damage goes unaddressed. Therefore we call on the World Bank to make known during the Spring Meetings that it is willing to host the Secretariat of the Loss and Damage Fund. 

‍FURTHER READING

For more a more in depth look at the conditions the World Bank must meet to become the interim host of the Loss and Damage Fund and what challenges the Bank must overcome to become the long term host of the Fund see the “Reminder To The Board: The World Bank And The Loss And Damage Fund Are Uncomfortably Paired”. We also recommend reading “The Loss and Damage Fund Board: Getting It Right from the Start” from the Heinrich Böll Foundation, Washington DC.