The newly appointed board of the climate finance world’s latest entry – the hard-won UN “loss and damage” fund – will likely hold its first meeting in late April after delays in agreeing members. But despite soaring needs for help, the fund itself isn’t expected to hand out any money until 2025 at the earliest, officials say.
The World Bank – the fund’s expected host – said on its website last week that its own board anticipates approving a formal plan to become the fund’s “financial intermediary” by mid-April, with a final operating deal due to be in place with the fund by the end of July.
But would-be recipients of the loss and damage fund’s resources are already jostling for position in a growing queue of nations hoping for help – and its board faces an unenviable task: figuring out how to fairly divide very little money among too many people in desperate need of it, as climate impacts accelerate in a warming world.
Timetable of steps the World Bank plans to undertake to become host of the new UN loss and damage fund (Source: World Bank)
Pakistan, for instance, is still seeking about $16 billion to rebuild roads, bridges, schools and more, after 2022 floods inundated a third of the country. In southern Africa, Zambia – hit by a severe drought that has ruined half of this season’s staple maize crop – wants support to shore up its dwindling water supplies.
Vulnerable countries – from Pacific and Caribbean island nations to Bangladesh – are looking for money to cover growing losses as warmer seas drive stronger hurricanes and cyclones. And in Senegal, where higher oceans are accelerating coastal erosion, families watching their ancestors’ skeletons float out to sea from flooded graveyards are asking for cash to rebuild crumbling coastal communities.
“The need is for trillions (of dollars) – and what we have is millions, not even billions,” said Ritu Bharadwaj, a climate finance and governance researcher at the UK-based International Institute for Environment and Development who has closely followed the new fund’s evolution. So far, it has garnered about $700 million in pledges.
With the residual costs from loss and damage projected to reach a total of $290 billion to $580 billion by 2030, according to a 2018 study, the loss and damage fund aims to ramp up its resources significantly, largely by persuading donor governments it can use their money effectively.
In partnership with a new taskforce on international taxation, it is also exploring how to harness innovative but politically tricky funding sources such as levies on fossil fuels, aviation, shipping and financial transactions.
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To make limited resources stretch further, fund observers like Bharadwaj have urged the board to consider ways to reach vulnerable people directly, such as cash transfers when a pre-set trigger point is passed – for example, a top-strength hurricane hitting an at-risk zone.
That approach would cut out middleman delivery agencies that critics say now claim too much of climate finance flows and reduce the amounts getting to the frontlines.
Bharadwaj and some others also believe the fund should consider supporting so-far inadequate efforts to build resilience to worsening climate shocks, rather than just responding once they happen – in order to curb future demands for assistance.
That could include helping Zambia’s farmers build community irrigation systems to avoid them coming back to the fund repeatedly to cover crop losses from warming-fuelled drought.
“We need to be more responsive to the comprehensive risks the communities are facing,” said Bharadwaj.
Between relief and resilience
However, Avinash Persaud, a loss and damage fund board member from Barbados representing Latin American and Caribbean nations, said the fund should focus on its core mission – helping the worst-hit communities and countries recover and rebuild after climate impacts – rather than responding to well-intentioned pleas to expand its work.
“This fund is not replacing relief agencies. This is not a resilience-building fund,” he told Climate Home. “This is doing the stuff in the middle – what happens the day after the relief agencies pack up and leave your people fed and watered but under blue tarpaulins.”
The fund could support the reconstruction of devastated towns in a safer location, repairs to roads, bridges and schools – or anything else that “reboots the community”, said Persaud, an economist noted for helping design the Bridgetown Initiative, which aims to reshape international finance flows to help debt-strapped countries boost climate protection.
Damage in a Miskito indigenous community called Wawa Bar, after being the epicenter of Hurricane Eta, on the Caribbean side of Nicaragua. The North Caribbean, one of the poorest regions of Nicaragua, was plunged into uncertainty and despair after the double blow of hurricanes Eta and Iota, which sowed death and destruction in Central America, Puerto Cabezas, Nicaragua, November 23, 2020 (Photo: Katlyn Holland/CRS / Latin America News Agency via Reuters)
With the loss and damage fund’s 26-strong board now in place – albeit several weeks late and yet to name one developing-world member with only an alternate from India listed for that seat – it is expected to start work in April to establish its operating rules.
The board is set to grapple with a range of contentious discussions, including whether a share of support should be given as concessional loans rather than simple grants.
Also up in the air is whether money should move straight to governments and local organisations or also through international partners – including development banks and UN agencies – and how much direct access to the fund vulnerable communities should have.
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With the UN-backed Green Climate Fund, for example, about three-quarters of funding has been channeled to countries via international organisations and only a quarter has been delivered directly to developing countries and regions for projects.
Harjeet Singh, who has tracked efforts to establish the fund for more than a decade and is now global engagement director at the Fossil Fuel Non-Proliferation Treaty Initiative, said he was hopeful “this fund is going to be different from the ones we’ve had so far”.
Fund with ‘a clean slate’
Michai Robertson, a climate finance negotiator for the Alliance of Small Island States and a researcher at the UK-based Overseas Development Institution, said language in the agreement setting up the fund should help ensure it operates in new ways.
In making allocations, for instance, the board – which aims to disburse money far faster than existing climate funds – will have to balance the needs of countries that have sustained large climate losses with setting aside a basic floor of support for poorer or highly vulnerable nations where the overall bill is smaller but some communities are hit very hard.
Currently, small island developing states get just 2% of international climate finance and least-developed countries, largely in Africa, about 8-10%, Robertson noted.
“You don’t want one country to take up all the scarce resources,” he said.
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The fund’s agreement also says that vulnerable countries and communities should have a large say in deciding priorities for using its money – and that Indigenous and other community knowledge of local risks should be considered as a valuable source of information, especially when climate risk modelling is lacking in some countries.
The fund will also address some “non-economic” losses and damage – such as the disappearance of nature a community relies on, or cultural institutions – in the form of finance to help rebuild a ruined museum or replant lost mangroves, Singh said.
Bharadwaj said she hoped the fund can act in a way that is catalytic, helping countries fill the gaps in other funding streams – from climate adaptation and resilience, to development and humanitarian aid.
“When an existing institution or organisation does things in a certain way, it takes a lot of effort to change that. But the loss and damage fund is not carrying any baggage behind it. Here we have a chance for a clean slate,” she said.
The post Expectations mount as loss and damage fund staggers to its feet appeared first on Climate Home News.
Expectations mount as loss and damage fund staggers to its feet
Gill Einhorn is head of the Forest Future Alliance and Natalie Çilem is community lead of the Global Wildfire Leadership Network.
Wildfires have devastated communities across the world this summer, claiming lives, displacing thousands of people and leaving billions in economic damage in their wake. In Europe alone, wildfires have already caused an estimated €19 billion in losses this year.
They are an economic, financial and public health challenge that is growing faster than many governments and markets are prepared for – and exposing the real costs of poor land management.
A system built for recovery, not resilience
Far more money is currently spent responding to the disastrous effects of wildfires than preventing them in the first place. The United Nations Environment Programme estimates that more than half of wildfire-related spending goes towards response, while planning receives only around 0.2 percent. This problem is not limited to wildfires; over 95 percent of disaster aid between 2005 and 2017 was allocated to response, and less than 4 percent was directed towards prevention or preparedness.
Forests are critical, but without investment in how land is managed and protected, their value is neither stable nor guaranteed. Protecting forests requires investing not only in conservation, but in the conditions that keep forests standing.
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Each dollar invested in wildfire-resistant construction could save around $210 in avoided future economic losses, according to a report by the World Economic Forum and Forest Future Alliance. Despite this evidence that prevention can significantly reduce future costs, wildfire resilience remains chronically underfunded.
This spending discrepancy is creating significant challenges for insurers, asset owners and financial institutions. Global insured losses from natural catastrophes reached $107 billion in 2025, with wildfires, floods and storms accounting for 92 percent of claims.
In this context, insurers are reassessing where and how they are willing to underwrite risk. Around 56 percent of global wildfire losses between 2000 and 2023 were uninsured. In some high-risk areas, insurers are scaling back coverage altogether, leaving homeowners, businesses and governments to shoulder a growing share of the costs – making it increasingly difficult to break even.
Proven solutions are already paying off
In many regions, wildfires are driven not by natural causes but by the deliberate clearing of land for agriculture. Degraded landscapes are becoming drier, more flammable and increasingly vulnerable to catastrophic loss, creating a vicious cycle of deforestation, economic damage and rising emissions.
The answer is not simply stronger firefighting capacity. Governments, investors and businesses must work together to shift capital upstream into prevention, resilience and long-term landscape stewardship of healthy forests. That means planting appropriately, investing in heat-resistant species, exploring approaches that minimise fire footprints through active management, and exploring the AI and technology solutions that are burgeoning.
Solutions to this already exist and are proven to have an impact. Following devastating wildfires year-on-year, Portugal shifted its approach to wildfire management, increasing prevention spending within its national rural fire management system from around 20 percent in 2017 to approximately 60 percent in 2022. While many countries remain locked in a reactive cycle of disaster response, public policy can shift investment upstream and make resilience a priority before fires occur.
Indigenous communities have long used proactive land stewardship to reduce wildfire risk while supporting healthy and productive landscapes. For example, the Cheslatta Carrier Nation in British Columbia traditionally managed fuels through cultural fire practices but now implements mechanised fuel removal methods under commercial agreements. By combining Indigenous stewardship with sustainable forest management, Cheslatta is generating community benefits while also boosting wildfire prevention.
Resilience can also be strengthened through finance and technology. FireSat, a partnership led by Earth Fire Alliance with Google.org, the Gordon and Betty Moore Foundation and Muon, is a satellite constellation designed for rapid wildfire detection. Scanning every 20 minutes, it can detect fires 400 times smaller than current systems and track them through smoke and darkness in almost real time. In California alone, FireSat could prevent up to 350,000 acres from burning each year. It has recently received significant new investments allowing it to expand towards a constellation of more than 50 satellites that will monitor every point on Earth every 20 minutes or less.
In Brazil’s Pantanal, the Embrace the Forest initiative uses AI-powered detection towers across 2.5 million hectares to support earlier intervention and faster response. During the severe 2024 fire season, the initiative contributed to a 40 percent reduction in burned area compared to 2020.
These examples illustrate what is possible when resilience is treated as an investment priority rather than a recovery cost. But we must ensure funding for these measures is scaled before disaster strikes. Initiatives like the Global Wildfire Leadership Network (GWLN) are key, bringing together corporate decision-makers, investors, insurers, governments and Indigenous leaders to direct investment towards prevention and align finance, technology and stewardship to protect nature, safeguard communities and strengthen future economic stability. With a goal of doing more together than the sum of our parts, the network focuses on Forest Future Alliance GWLN Solutions Labs – where partners sign up with the intent to collaborate.
Rewarding prevention
Financial incentives must be created that reward prevention. This can be done by scaling public-private partnerships, supporting long-term landscape stewardship, investing in community capacity including Indigenous wisdom and technology. Ultimately, our terrestrial natural reserves are critical infrastructure that support resilient economies and thriving communities.
One in three people are dependent on forest services, goods and economic opportunities for survival, so it’s in all our interests to protect what we have. Forests support cooling, water and food security – and are a very cost-effective way of removing carbon dioxide from the atmosphere, where done appropriately.
UN chief warns climate crisis “in overdrive” as El Niño threatens to fuel the fire
No sector can solve this challenge alone. The benefits of wildfire resilience are shared across communities, governments, insurers, investors, utilities and businesses. A single intervention can protect homes and livelihoods, reduce insurance claims, secure water supplies and lower future public costs. Because the benefits are shared, the solutions must be too. Coalitions of actors can take proven approaches further than any one individual or organisation could alone.
As wildfires continue to burn at an unprecedented scale, the opportunity now is to roll out solutions, shift investment upstream and build a future where resilience, rather than recovery, becomes the foundation of thriving economies.
The post From firefighting to future-proofing: Preventing wildfires must be the priority appeared first on Climate Home News.
From firefighting to future-proofing: Preventing wildfires must be the priority
Methane is a powerful greenhouse gas and the second-largest contributor to global warming after carbon dioxide (CO2).
Methane traps heat in the atmosphere more efficiently than CO2, but has a significantly shorter lifespan, fading after just a few decades.
Therefore, reducing emissions of methane – a gas primarily produced by agriculture, fossil fuels and waste management – is a powerful option for limiting global warming in the near-term.
Yet climate strategies and models often only focus on CO2, or combine all greenhouse gases into one metric known as “CO2 equivalent”.
The latter approach makes reducing methane emissions dependent on modelling choices and assumptions about the “equivalence” of methane and CO2.
It hides the opportunities and challenges linked to methane’s high warming and short lifetime.
In a new study, published in Communications Earth & Environment, we offer a different perspective that “decouples” CO2 and methane reduction and takes global warming limits as a starting point for determining the required level of methane cuts.
We show that, even under the most ambitious existing national net-zero targets, an absence of methane reduction leads to peak warming that exceeds 1.85C above pre-industrial levels.
The study highlights that, to limit peak warming to well-below 2C, net-zero CO2 targets must be complemented by stringent methane emissions cuts.
CO2 equivalent
How much methane corresponds to one tonne of CO2?
The question is as difficult to answer as: ‘how much spaghetti equals a chicken?’ You could compare the two meals according to their calories, protein content or cost. Each metric can be convenient, but is only valid for that specific comparison – no amount of spaghetti is the same as a chicken.
The same is true for the conversion of emissions of methane and other gases to CO2-equivalent emissions. It can be convenient, as it allows different gases to be compared or combined into a single number. This is why the metric is used in climate targets or evaluating the effectiveness of different mitigation options.
But, because methane and CO2 have different atmospheric lifetimes and warming properties, any conversion is only valid for a chosen time horizon and a chosen baseline.
Depending on the assumptions baked into calculations, methane mitigation can either appear as an immediate priority or framed as almost unnecessary.
There are a number of metrics that scientists use to convert greenhouse gases – whether methane, hydrofluorocarbons or nitrous oxide – into CO2-equivalent emissions:
- “GWP20” measures how much heat a greenhouse gas traps in the atmosphere over a 20-year period, relative to CO2. It emphasises urgent methane mitigation but has been criticised for its implicit discounting of future damages.
- “GWP100” looks at a 100-year timeline. It gives more weight to long-term warming and is used in “integrated assessment models” (IAMs) used by scientists, national emission reporting to the UN and by the GHG Protocol used by companies.
- “GWP*” considers the rate of emissions, rather than warming over a fixed time horizon. Under GWP*, very limited methane reductions bring CO2-equivalent emissions to zero, meaning remaining methane emissions can be designated as causing “no additional warming”. (This interpretation remains controversial as it assumes the continuation of historical levels of warming.)
IAMs are the tools used to generate future emissions scenarios. Because they combine CO2 and methane emissions, the impact of methane emission cuts alone is difficult to isolate in existing emission scenarios.
IAM-generated scenarios also assume mitigation decisions driven by costs. Combinations of CO2 and methane emission pathways that are not purely cost-effective are, therefore, not represented, even though climate policy is messy and emission pathways are rarely cost-effective in the real world.
Only a few countries – including Japan, Mexico and South Korea – specify methane mitigation targets.
A different approach
In our study, we separate CO2 and methane emissions and treat them as independent.
Instead of choosing a conversion method, we suggest that states and organisations set a limit on peak global warming first, then, based on their existing net-zero targets, determine the minimum compatible methane reduction target.
Companies and countries around the world have set net-zero targets focused on CO2, as well as those that include all greenhouse gases. As a result, our research looks at the necessary methane reductions for both types of goal. We consider scenarios where companies or countries deliver linear – in other words, steady – emissions reductions to reach net-zero.
Using a simple climate model, we systematically combined methane and CO2 (or greenhouse gas) mitigation pathways starting in 2025 and calculated peak warming.
The figure below shows how peak warming depends on both the year of reaching net-zero CO2 and the level of methane cuts.
The blue arrows in the figure show that to limit warming to 1.7C under a 2050 net-zero CO2 scenario, methane emissions would need to fall by at least 69% by 2050, relative to 2020.
Our research also finds that, if an organisation or country’s 2050 net zero-target covers all greenhouse gases, its methane emissions would need to fall by 63% instead.
However, under current policies, methane emissions are expected to increase by around 20% by 2050, relative to 2020. We find that this pathway would result in peak warming above 2C by 2050 – even if global CO2 emissions were to reach net-zero by that date (see purple bar on the right-hand side of the figure above).
The figure also shows how, if methane emissions remained at 2020 levels and net-zero CO2 was delivered by 2040 or later, warming would exceed 1.85C. This level of warming is above what has been argued as consistent with the Paris Agreement’s “well-below” 2C limit.
Conversely, cutting methane emissions by around one-third – in line with the Global Methane Pledge target for 2030 – could reduce peak warming by 0.15C, of which 0.05C could be delivered by interventions that come at no net cost. These are shown by the orange and red bars, respectively, on the figure above.
The table below highlights the minimum compatible methane cuts for three different peak warming levels and net-zero CO2 or greenhouse-gas emission targets.
| Peak warming | Year of net-zero CO2 emissions | Year of net-zero greenhouse-gas emissions | ||||
| 2050 | 2060 | 2100 | 2050 | 2060 | 2100 | |
| 1.7C | -69% | – | – | -63% | – | – |
| 1.8C | -32% | -56% | – | -11% | -47% | – |
| 2C | +8% | -8% | -83% | >50% | +33% | -78% |
Minimum methane emission reductions between 2020 and the year of net-zero emissions, consistent with peak warming of 1.7C, 1.8C, and 2.0C at 50% likelihood, assuming linear emission trajectories. For some net-zero targets and peak warming levels, there are no compatible methane mitigation targets (indicated by “–”).
Remaining carbon budget
The global carbon budget refers to the amount of cumulative CO2 emissions allowable while still meeting a particular global warming threshold.
The 2021 climate science report from the Intergovernmental Panel on Climate Change (IPCC) and a 2023 Nature study estimated that, by 2025, the remaining carbon budget for holding warming to 2C would be around 1,000-1,150bn tonnes of CO2 (GtCO2).
We find that these estimates are founded on the assumption of methane reductions of 27-35% by 2050, relative to a 2020 baseline. (A 2024 Communications Earth & Environment study reached similar conclusions.)
Under the GWP* metric, where methane emissions are only cut to maintain “no additional warming”, the remaining carbon budget would be constrained. The best estimate of a 2C budget shrinks by around 30% to approximately 750GtCO2.
Finally, if methane emissions are not cut at all in the future, our findings suggest that the remaining carbon budget for 1.7C of global warming has, in effect, already been exhausted.
Our analysis shows how peak warming depends on both CO2 and methane reduction – and how methane-specific targets can help refine existing net-zero targets.
Crucially, we show that complementing net-zero CO2 targets with stringent methane cuts is necessary to limit peak warming to well-below 2C.
Weber, K. et al. (2026) Limiting warming by CO2 and methane mitigation in an expanded scenario space, Communications Earth & Environment, doi:10.1038/s43247-026-03832-1
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The post Guest post: Why tough methane cuts are crucial for keeping warming ‘well-below’ 2C appeared first on Carbon Brief.
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Climate Change
Pacific Islands Forum leaders, Albanese must not lose focus on Pacific priorities of climate and ocean
KOROR, PALAU, Monday 31 August 2026 — As Pacific leaders gather for the 55th Pacific Islands Forum Leaders Meeting in Palau from today, Greenpeace Australia Pacific is urging Prime Minister Anthony Albanese to stand with Pacific family by keeping Pacific needs at the heart of negotiations, backing longstanding Pacific leadership, supporting Pacific energy sovereignty and ocean custodianship, and holding the line on 1.5°C.
Against the backdrop of tense geopolitical turmoil, increasingly frequent and lethal extreme weather disasters, the threat of deep sea mining and an energy crisis driven by fossil fuel dependence, the Pacific Islands Forum Leaders Meeting (PIFLM) is a critical moment for Pacific nations to unite with Pacific needs central to regional dialogue.
The climate crisis, security, the opportunities of renewable energy in the Pacific, ocean protection, and the shifting political landscape will be the focus of the Forum’s discussions.
Speaking from Palau, Shiva Gounden, Head of Pacific at Greenpeace Australia Pacific, said:
“The Pacific Islands Forum is the most important multilateral forum in our region, unifying the Pacific under increasingly turbulent global circumstances. We are urging Forum members, including Australia, to not lose focus of Pacific priorities of climate and oceans amid noise and external pressures at this year’s meeting.
“It is very clear that the greatest security threat to our region is climate change and the only way we can address that is through a just transition away from fossil fuels. Regional cooperation is an antidote to climate chaos and geopolitical tension – together, our region can be guided by Pacific nations’ legacy of leadership from the frontlines of the climate crisis, as we build a more peaceful and secure world.
“This year’s Forum will set the stage as we build momentum toward COP31 and a Fossil Fuel Free Pacific. Australia must back Pacific energy sovereignty as a solution to the compounding threats facing our region, including soaring costs of living and increasingly lethal extreme weather disasters, and resist the militarisation of our oceans, deep sea mining, and power politics.
“We must not lose sight of what is needed. The regional adoption of Pacific-led solutions, a Pacific pre-COP with focus on advancing the just transition away from fossil fuels and community-targeted finance for strong and resilient futures beyond fossil fuels must be the foundations of this year’s Forum discussion. What we need now is stronger political will.”
Also in Palau, Dr Simon Bradshaw, COP31 Lead and climate expert at Greenpeace Australia Pacific, said:
“Prime Minister Albanese faces a major test of Australia’s climate credibility and Pacific partnership this week. We cannot be a friend to the Pacific and continue to expand fossil fuel production. The best way for Australia to remain the Pacific’s security partner of choice is to act faster on the Pacific’s number one security concern — climate change.
“The Albanese Government has approved at least five new coal and gas projects since the last Pacific Islands Forum Leaders Meeting, and 36 since being elected, every one of which increases the threats to life, security and sovereignty facing Pacific communities.
“Nowhere in the world are the dangers of fossil fuels or the benefits of renewable energy clearer than in the Pacific, which faces the double blow of climate disasters and expensive fuel imports.
“Australia, as incoming President of Negotiations for COP31, has a responsibility to follow the Pacific’s lead, embrace the vision of a resilient Fossil Fuel Free Pacific, and do everything possible to keep 1.5°C alive. Doing so would establish Australia as a highly effective middle power, a force for good in troubled times, and a true ally and partner to the Pacific.”
—ENDS—
Greenpeace Australia Pacific has delegates from the Pacific and Australia at the PIFLM in Palau available for interview
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