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.
UN’s climate body faces “severe financial challenges” which put work at risk
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.
In Somalia, Green Climate Fund tests new approach for left-out communities
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
Climate Change
“Sink or swim”: WA Gov hugely underestimating decline in regional gas demand while sleeping on green exports, new report finds
PERTH, Tuesday 13 October 2026 — A new report from Greenpeace Australia Pacific and Springmount Advisory reveals green commodity exports are an untapped economic opportunity for Western Australia in a declining Asian gas market, while offering a genuine solution for decarbonising Asia.
From Gas to Green: Building Western Australia’s Future State is a comprehensive analysis of the declining gas market in Asia, and the untapped economic opportunity for WA to become a global leader in green commodity exports while driving the regional shift away from fossil fuels.
The report offers key recommendations for the WA Government to support regional decarbonisation through an orderly phase out of gas exports in favour of green iron and other green exports. It comes as global climate leaders from across business, politics and advocacy prepare to meet for the Global Citizen Now: Perth event focused on decarbonising WA.
Key findings:
- Gas demand is falling across WA’s core markets in Asia: Gas demand fell in 2025 and is projected to continue to decline, driven by a combination of global geopolitical factors and domestic concerns.
- Policy shifts in key markets since the war on Iran now prioritise renewables and nuclear over gas: Japan, South Korea and China have legislated energy plans that prioritise renewables and nuclear over gas.
- New WA gas would arrive in a saturated, uncertain Asian market filled with cheaper gas: The US is now the world’s largest liquefied gas producer and plans to double its capacity as it also targets Asian markets.
- Green commodities offer a real solution to sustain WA’s economy: WA can lead Australia’s green commodity exports, which by 2060 could be worth almost a trillion dollars.
- Exporting more WA gas is likely to delay or impede Asia decarbonisation: Despite claims by the gas industry, there is no evidence that WA gas is displacing coal in Asia, and in fact diverts resources from genuine decarbonisation options.
Geoff Bice, WA Campaign Lead at Greenpeace Australia Pacific said: “As our export partners in Asia shift away from expensive and polluting gas, the WA Government has a golden opportunity to pivot our economy to green exports, like green iron, which is the most effective way to help our region to decarbonise.
“The writing is on the wall: gas is in decline, renewables are our future. In this context, it makes zero sense for the government to encourage high risk projects like Woodside’s reckless Browse gas proposal at Scott Reef.
“This report clearly shows that the WA Government faces a choice: sink or swim. They can either allow the gas industry to keep ripping off West Australians and continue propping up its decline, or choose the path that will deliver enormous benefits to the state and the world by becoming a leader in the rapidly expanding green economy.”
Tom Quinn, Managing Director of Springmount Advisory: “Western Australia prospers when it looks to the future and builds for future demand. Twenty years from now, what the world needs is green commodities made using WAs abundant renewable resources. Just like it did with iron ore in the 1950s and gas in the 1970s, WA should look to the future and build what the world will need, not sunsetting industries like gas that are already past their peak.”
-ENDS-
Media contact
Kate O’Callaghan on 0406 231 892 or kate.ocallaghan@greenpeace.org
Lucy Keller on 0491 135 308 or lucy.keller@greenpeace.org
A report from Greenpeace Australia Pacific and Springmount Advisory reveals the untapped green economic opportunity for Western Australia in a declining Asian gas market, which also offers a genuine solution for decarbonisation in Asia.
Is Western Australia clinging to a fading gas industry while a thriving green future passes it by? As major Asian trading partners rapidly pivot away from volatile gas imports toward cheap solar and battery storage, this report exposes a high-stakes choice: risk becoming stranded in an oversupplied fossil fuel market, or harness WA’s unmatched sun and wind to lead the global clean energy transition.
Summary
From Gas to Green: Building Western Australia’s Future State reveals that Western Australia (WA) faces a critical juncture as falling Asian gas demand, geopolitical gas supply volatility and accelerating renewable energy deployment undermine the long-term economic viability of gas exports. By harnessing its world-class wind and solar resources, the report demonstrates that WA can execute an orderly phase-out of gas and pioneer a green commodity export economy that could generate $987 billion in economic value by 2060, create 24,000 ongoing jobs, and drive a 9.6% reduction in global greenhouse gas emissions.
Key Findings
- Gas demand is falling in Asia – WA can no longer rely on gas exports: Gas demand in core Asian markets fell in 2025 and is projected to continue to decline in 2026. Legislated energy plans in Japan, South Korea, and China now prioritise renewables and nuclear over gas.
- Asia is increasing renewables, importing gas just gets in the way: Evidence from markets like Thailand suggests that gas imports are increasingly crowding out cheaper renewable energy investments and battery storage rather than displacing coal, locking in more emissions over time.
- Green commodities offer a real solution to decarbonise Asia – this is a major win for WA: With world-class renewables, WA can lead Australia’s green commodity exports, which by 2060 could be worth almost a trillion dollars ($987 billion) and support a genuine 9.6% reduction in global emissions.
Recommendations to WA government
Recommendation 1: Plan an orderly gas phase-out aligned with a trading partner pivot plan
Implement a managed, orderly phase-out of gas exports aligned with trading partners’ decarbonisation pathways, rather than waiting for demand to collapse, by:
- Developing and implementing a staged phase-out of gas facilities aligned with feedstock supply expiry or typical end of facility lifespans.
- Committing to no new gas development for gas expansion, including Browse and Kimberley fields.
- Developing new, reciprocal trade relationships with existing gas trade partners, structured to progressively replace gas exports with green commodities – integrated with recommendation 2.
Recommendation 2: Develop an integrated green commodity export strategy, positioning WA as a global green iron manufacturing hub
Establish an integrated green commodity export strategy that immediately prioritises green iron development, positioning WA as a global green iron manufacturing hub, by:
- Committing to green commodity export targets to give industry and investors a clear demand signal.
- Prioritising green iron as the lead sector within the broader green commodity strategy, given WA’s iron ore endowment and first-mover potential.
Recommendation 3: Reject false solutions such as carbon dumping (CCS) and blue hydrogen
Reject carbon dumping (also described as carbon capture and storage, or CCS) and blue hydrogen as viable decarbonisation technologies, and prioritise green hydrogen and proven renewables for clean energy and fuel production by:
- Excluding blue hydrogen projects (and CCS-dependent projects) from all government support programs.
- Requiring existing hydrogen-based production (including ammonia, methanol, synthetic fuels) to have clear, near-term transition timelines to switch to green hydrogen production.
What you can do
Together, we can push for a prosperous green future.
You can help by:
- Sending an email to Environment Minister Murray Watt and Prime Minister Anthony Albanese, calling on them to reject Browse.
- Sharing this story to help more Australians understand what’s at stake.
- Encouraging your friends and family to take action.
REPORT: “From Gas to Green” Building Western Australia’s Future State
Cleaner cooking projects in the UN carbon market will have to set aside a share of their credits to insure against the risk that the trees they save are lost to fire, drought or logging, after the market’s regulator rejected calls to exempt the sector.
The requirement is part of a new rulebook that the Paris Agreement carbon market regulator – the Article 6.4 Supervisory Body – approved last Friday for programmes that aim to cut emissions by distributing new and cleaner cookstoves in regions that still burn wood or charcoal for cooking.
These are the UN mechanism’s first rulebooks for cookstoves, one of the carbon market’s most popular credit types and also one of its most criticised for overstating climate benefits.
They consist of two methodologies: one for programmes that aim to cut greenhouse gas emissions by distributing more efficient cookstoves that burn less wood or charcoal, and a separate methodology for projects shifting households to lower-emissions cookers running on electricity or liquid petroleum gas (LPG).
Mkhuthazi Steleki, the South African chair of the Supervisory Body, said “this decision gives cleaner cooking projects a new pathway under the UN carbon market, with clear rules to ensure that each credit represents a real and credible emission reduction”.
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Exemption push rejected
More efficient cookstove projects earn credits based on the amount of carbon they save by preserving trees that would have otherwise been cut down and burned for fuel. But if those trees later burn in a wildfire or are logged, the carbon stored would be released anyway, erasing the climate benefits of the credits.
Several carbon credit developers, conservation NGOs and the UN Environment Programme (UNEP) disputed that cookstove projects face this risk, in what critics described as a “coordinated lobbying campaign”.
They argued that, unlike forest protection schemes, this type of credit represents a “flow” of avoided emissions rather than a “stock” of stored carbon that can be released. They also warned that requiring a buffer would impose disproportionate costs and undermine the financial viability of these activities.
But the UN carbon market regulator was not persuaded by the argument. It decided that projects would have to protect against this reversal risk by handing over a percentage of credits to a so-called “buffer pool” instead of selling them.
‘New paradigm’
The amount of credits to be given up is calculated by applying different methods for natural risks, like wildfires, droughts or hurricanes, and human-caused ones, such as logging or land clearing.
For natural risks, project developers will need to apply local risk values derived from new modelling published by a group of independent scientists.
Campaigners have broadly welcomed the decision. Federica Dossi, an expert at Brussels-based advocacy group Carbon Market Watch, said it sets a new paradigm for calculating reversal risk based on empirical data. “This approach is grounded in science and we hope to see this now being adopted by other carbon crediting mechanisms in the voluntary market,” she added.
Backers claim this method is more rigorous than current practice in the voluntary carbon market, which largely relies on expert guesswork.
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Pushback over science
As Climate Home News previously revealed, the same industry and NGO groups that sought an exemption from the “buffer pool”, along with some corporate buyers, criticised the use of a study backed by the UN carbon market’s experts that recommended the new risk assessment approach.
The groups pushed for more flexible rules that would have allowed natural risk values drawn from other sources, including national databases, or from the project developers themselves.
While the Supervisory Body rejected this approach, it gave project developers and countries the option to propose alternative values that would first need to be vetted by the mechanism’s expert panel and then approved by the regulator.
A carbon market expert told Climate Home News that, while it is too early to say how this provision will be used, they expect requests will have to be backed up with solid scientific evidence, lowering the risk of unfounded claims.
Policy discounts questioned
To guard against human-caused risks, projects will need to apply a flat 20% value set by the Supervisory Body, at the bottom of the 20-45% range recommended by its technical experts ahead of last week’s meeting.
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