Loss And Damage Funding.pdf

The Transitional Committee's proposal for the operationalization of the new funding arrangements for responding to loss and damage includes:

1. Establishment of a fund: A fund will be established to assist developing countries in responding to loss and damage associated with climate change.
2. Governing instrument: The governing instrument for the fund will be approved, outlining its mandate, structure, and operations.
3. Independent secretariat: A new, dedicated, and independent secretariat will be established to service the fund.
4. Accountability: The fund will be accountable to and function under the guidance of the Conference of the Parties (COP) and the Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA).
5. Board governance: The fund will be governed and supervised by a Board, with members nominated by Parties through their regional groups and constituencies.
6. Host country and secretariat: The Board will select a host country and establish a secretariat, with the World Bank invited to host the secretariat as an interim trustee for a period of 4 years.
7. Financial contributions: Developed country Parties are urged to provide financial support, and other Parties are encouraged to contribute voluntarily to the fund.
8. Operationalization: The fund will be operationalized as a World Bank-hosted Financial Intermediary Fund (FIF) for an interim period, with the World Bank taking necessary steps for its prompt operationalization.

Key decisions include:

Approving the governing instrument for the fund
Establishing a Board to govern and supervise the fund
Designating the fund as an entity entrusted with the operation of the financial mechanism of the Convention and the Paris Agreement
Requesting the Standing Committee on Finance to develop arrangements for the fund's operation and accountability
* Inviting Parties to submit nominations for Board membership and urging the Board to select an Executive Director through a merit-based process.