Dar es Salaam. The Fund for Responding to Loss and Damage (FRLD) is projected to close the year with $412 million (Sh1.03 trillion) in cash resources—a modest but critical pool of financing as developing countries prepare to submit their first-ever proposals for support.
The update, delivered in the Report of the Board of the FRLD at the ongoing COP30 summit in Belém, coincides with the fund’s inaugural call for proposals.
According to the report, as of 23 September 2025, the FRLD had received $397.74 million (Sh994.4 billion) with additional transfers expected before 31 December to bring the total to $412 million.
Although this represents meaningful progress for a mechanism established just three years ago at COP30, it also underscores the vast gap between current resources and the rapidly escalating climate-induced losses confronting vulnerable nations.
The World Bank, serving as interim Trustee, reported total pledges of $790.24 million. Of these, $561.78 million have been formalized through contribution agreements, with 24 of 27 contributors already signed on. However, only a portion of these commitments has actually been deposited into the trust fund.
The projected $412 million by year-end reflects the fund’s real, deployable resources as it prepares to start reviewing country proposals in early 2026.
First call for funding
At COP30, the FRLD officially opened its first call for proposals the first opportunity for developing countries to request direct financing for loss and damage.
The process is guided by the Barbados Implementation Plan (BIM), adopted earlier this year.
Under the BIM, countries can submit proposals from mid-December 2025 to mid-June 2026.
The first approvals are expected in July 2026. For this initial cycle, the FRLD has earmarked $250 million, meaning only a limited number of projects — likely between $5 million and $20 million each will receive funding.
“This first call for proposals will help test, learn, and shape the fund’s long-term operating model,” said Jean-Christophe Donnellier, FRLD Co-Chair. “It is an important signal to developing countries that support is now available.”
During the launch of the BIM, Tanzania’s Special Envoy and Presidential Advisor on Climate Change, Dr Richard Muyungi noted that “Current estimates for economic losses in 2025 alone range from $128 billion to $937 billion,”.
He adds that the $412 million available and only $250 million allocated for the first call represent “a drop in the ocean.”
Independent assessments estimate that developing countries may require $200–400 billion annually by 2030 to respond to loss and damage.
With global pledges to the FRLD totaling just $790 million less than 0.2 per cent of the estimated need experts warn that the fund must scale up rapidly. Without significantly increased donor contributions, the FRLD’s reserves risk being exhausted by 2027
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