The UN Framework Convention on Climate Change’s (UNFCCC) 28th Conference of the Parties (COP28) set out a historic agreement to operationalize the Fund for Responding to Loss and Damage (FRLD), including new funding arrangements for responding to loss and damage (L&D). The COP28 decision also established a Board to govern the FRLD (the Board).

The Board is tasked with developing an operational framework for coherence and complementarity for responding to L&D in 2025 for the FRLD, helping to ensure that the FRLD’s activities and the new and existing funding arrangements for L&D are fully and effectively utilized. Optimizing support to developing countries to respond to L&D in a world where climate change disasters are increasing in intensity and occurrence is of critical importance.

Additionally, the first annual high-level dialogue on coordinating and coherence of L&D funding arrangements (HLD) will take place during the World Bank and International Monetary Fund (IMF) Spring Meetings from 21–26 April 2025. The Board’s work on the complementarity and coherence framework is linked to its work on standard procedures which includes the HLD that will be co-convened by the Board and the UN Secretary-General.

This paper suggests key structural elements, objectives, and a follow-up process for an operational complementarity and coherence framework and the additional funding arrangements for L&D for the FRLD. These recommendations maximize the time available ahead of COP30 to give guidance. Institutional elements could include: (i) co-financing; (ii) guiding principles; (iii) mechanisms or guidelines for new sources of finance; and (iv) stipulation of joint activities and delegation of program authority. Other elements that can enhance complementarity and coherence at the activity level, such as a set of agreed outcomes that the Board will aim to achieve within a certain timeframe, could correspond to the elements decided at the institutional level.

Questions for consideration

• What should be the key elements of the complementarity and coherence framework under the FRLD? Which elements are missing or should be included?
• How can guiding principles help ensure complementarity and coherence for L&D funding arrangements?
• Are Parties prepared to make submissions on this topic ahead of COP30?
• At what level of detail should the Board report on this framework to the COP and CMA?