Wealthy countries are under fire for delaying payments to the UN’s Loss and Damage Fund, threatening crucial support for climate-vulnerable nations. Of the $789 million pledged, less than half, just $348 million, has been delivered, raising fears that planned disbursements for 2025 could be delayed.
The fund, created at COP27 to help countries deal with climate disasters, aims to release $250 million next year. But slow and unpredictable payments from major donors like Italy, the EU, and the UAE are causing concern. Only a few nations, including Germany and Ireland, have paid in full.
“This is lemonade-stand money,” said Fiji’s Daniel Lund, urging richer nations to scale up contributions to meet the growing crisis. Developing countries are calling for $100 billion per year by 2030.
Debates are also emerging over whether private-sector involvement should influence how funds are allocated. Critics warn this could undermine the fund’s core purpose, supporting those most affected by climate change.
Despite the setbacks, the fund plans to call for project proposals in October 2025, with first disbursements expected in early 2026.
Read the full report on Climate Home News here.
