Too Big To Fail: Finance for Loss and Damage in a Rupturing World

The evidence is clear: climate change is leading to irreversible impacts on vulnerable countries across the globe. At the same time, geopolitical fragmentation, competition between major powers and growing pressure on public resources are weakening the political foundations of international climate finance. 

Although COP27 in 2022 led to an historic agreement for Loss and Damage finance, this report explains how the Fund for Responding to Loss and Damage (FRLD) is already severely underfunded relative to the scale of need, and its reliance on voluntary government contributions leaves it vulnerable to shifting political priorities and geopolitical tensions.  

This report examines the limitations of the Loss & Damage finance and puts forth recommendations to help the FRLD not just survive but thrive and continue as a peace-building global mechanism for many decades to come.