Operationalizing the loss and damage fund: Learning from the intended beneficiaries

This report issues recommendations to guide the implementation and operation of a new international Loss and Damage fund from the perspective of the intended recipients and beneficiaries who are vulnerable to the impacts of climate change. This report highlights the insights that emerged from a series of focus groups held with those representing and working with potential fund applicants in governments and organizations throughout the Global South regions: Africa, Asia, Latin America and Small Island Developing States (SIDS). Through the focus groups, participants provided an overarching scenario of on-the-ground needs and priorities which must be considered, the financial access bottlenecks that must be tackled, and the design features which should be taken into account to achieve intended goals.

The report also provides in-depth recommendations for making the L&D fund work for its recipients and beneficiaries, among others:

1. Expand the sources of funding and its generation modality by tapping into private sector sources, blended finance, middle-high income polluting countries, etc.
2. Governance process should allow decision making to be participatory, science-based and transparent
3. Provide simplified access procedures and creating windows tailored to the needs of different actors
4. Financing instruments should include long-term small grants, direct cash, seed investments, loans, programme and project-based funding