Context
The Fund for Responding to Loss and Damage (FRLD) allocated $21.6 million to Nepal for recovery and reconstruction following the devastating August 2024 floods, marking its first country-specific allocation.
About Fund for Responding to Loss and Damage (FRLD)
| Feature | Details |
| Origin & Evolution | Established: COP27 (Sharm El-Sheikh, Egypt, 2022). Operationalized: COP28 (Dubai, UAE, 2023). |
| Objective | To assist particularly vulnerable developing countries in responding to the economic and non-economic losses and damages caused by climate change. |
| Host & Structure | Interim Trustee: The World Bank.Governance: Governed by an independent Board representing both developed and developing countries (including LDCs, SIDS, Africa, Asia-Pacific, and Latin America). |
| Financial support | Contributions are voluntary, with funding intended to support vulnerable developing countries facing climate-related losses. |
Institutional Framework and Governance
- UNFCCC: The United Nations Framework Convention on Climate Change provides the overarching framework for international climate negotiations.
- COP27 (2022): Countries agreed to establish funding arrangements for addressing loss and damage.
- World Bank: Serves as the interim host of the Fund’s secretariat and provides trustee services.
- Philippines: Selected as the host country for the Fund’s Board.
| Important CTC from this article for UPSC: Bhotekoshi–Trishuli river system |
Q. Consider the following statements about the Fund for Responding to Loss and Damage (FRLD):
1. It was established at COP27 and operationalised at COP28.
2. It addresses only economic losses caused by climate change.
3. The World Bank provides interim hosting and trustee services for the Fund.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3
Answer: (b) 1 and 3 only
Explanation:
• Statement 1 is correct: because the Fund was established in 2022 and operationalised in 2023.
• Statement 2 is incorrect: because the Fund addresses both economic and non-economic losses.
• Statement 3 is correct: because the World Bank provides interim hosting and trustee services.