Joint Effort Against Climate Change: Adaptation Fund and Loss and Damage Fund Sign Landmark Cooperation Pact

Washington, D.C. (February 3, 2025) — In a groundbreaking step to confront the growing challenges of climate change, the Secretariats of the Adaptation Fund (AF) and the Fund for Responding to Loss and Damage (FRLD) have officially signed a Letter of Intent (LOI) aimed at forming a cooperation framework. The LOI, dated January 31, 2025, highlights the critical necessity for innovative and scalable solutions to address climate change's immediate and long-term effects on at-risk populations and ecosystems.

This collaboration supports the Paris Agreement by focusing on coherence, complementarity, and resource efficiency among climate funds. By combining their expertise, both funds strive to empower communities, foster sustainable development, and guarantee a transition that includes everyone.

Key Areas of Collaboration

The LOI outlines five priority areas for joint action:

1. Capacity Building: Enhancing the ability of developing nations to obtain climate finance and implement effective climate solutions through technical assistance, training, and resources.

2. Knowledge Exchange: Sharing best practices, insights, and research to boost the capacities of both funds and countries in tackling climate issues.

3. Funding Mobilization: Working together to attract financial support from public and private sectors for climate projects.

4. Support for Nations: Utilizing the funds’ initiatives to help countries align with their specific mandates and operational guidelines.

5. Advocacy Efforts: Promoting awareness of the pressing need for adaptation and responses to loss and damage in at-risk countries.

Statements from Leaders.

Ibrahima Cheikh Diong, Executive Director of the Fund for Responding to Loss and Damage, remarked:
“This partnership with the Adaptation Fund underscores our dedication to coherence and collaboration in the global climate. Together, we can enhance responses to loss and damage in the most vulnerable countries, ensuring no one is overlooked. By exchanging knowledge and experiences, we will amplify our collective impact.”

Mikko Ollikainen, The Head of the Adaptation Fund, stated: "Adaptation and loss and damage are interrelated. This collaboration enables us to identify shared objectives, align with the Paris Agreement, and optimize scarce resources. This framework will develop as we create value together, ultimately supporting the vulnerable nations we aim to assist."

Background

The LOI comes after a meeting between the two funds in Washington, D.C, in December 2024. Although it does not create legal obligations, it represents a solid commitment to work together. The LOI is valid for two years and could be extended for another two years.

About the Funds

• Adaptation Fund (AF): Initiated under the Kyoto Protocol, the AF funds projects and programs to assist vulnerable communities in adapting to climate change.

• Fund for Responding to Loss and Damage (FRLD): Established during COP27, the FRLD offers financial assistance to developing nations coping with climate change's economic and non-economic effects, including severe weather events and gradual changes.

This collaboration represents an essential advancement in the worldwide battle against climate change, guaranteeing that at-risk nations obtain the assistance necessary to enhance resilience and recover from climate-related losses.