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The board of the loss and damage fund is set to pick its host nation in July as it speeds up the process to ensure hard-hit countries can directly access money to help them recover from the unavoidable effects of climate change.

As the 26-member board held its first three-day meeting in Abu Dhabi this week, discussions centered on the administrative steps needed to get the fund up and running, and giving out money as soon as possible.

Selecting the host country for the board is a priority because only then will it be able to take up legal responsibility and enter into formal arrangements with the World Bank, which governments have asked to host the loss and damage fund “on an interim basis” despite the initial reluctance of developing countries.

The World Bank has until mid-June to confirm it is willing and able to take on this role. The decision rests largely on the bank’s ability to meet 11 conditions, including allowing developing-country governments and organisations working with vulnerable communities to receive money directly without going through intermediaries like multilateral development banks or UN agencies.

“Too many cooks”

Daniel Lund, a loss and damage board member from Fiji, said that overhead costs and management fees from multiple layers of middlemen swallow up a high proportion of development funding in general.

“For small island developing states, it is always too many cooks and not enough ingredients,” he told Climate Home. “A lack of direct access is a particularly unacceptable scenario when it comes to finance for addressing loss and damage because much of what we need to do is direct support [to] the individuals and communities that bear the burden [of climate change]”.

Southern Africa drought flags dilemma for loss and damage fund

Concerns have been fuelled by the World Bank’s lack of experience in working with direct access to communities in its other operations, climate finance experts said. But during the meeting in Abu Dhabi, the bank sought to provide reassurances, indicating its willingness to be flexible on this matter and find a solution.

Renaud Seligmann, the World Bank representative at the meeting, told board members the bank is looking into a model that would “break new ground” and that it is “prepared to innovate and design with you to make it work”.

Host selection fast-tracked

For the World Bank, a primary concern lies with the risks attached to giving money to hundreds of small entities that may have less strict compliance processes. For that reason, it wants the board of the loss and damage fund to take on legal responsibility in case funds are misused. And as that legal personality can only be obtained from the host country, the selection process is being fast-tracked.

Interested countries have until early June to submit their candidacy – Barbados, Antigua and Barbuda, Bahamas and the Philippines have already thrown their hats in the ring. The board is expected to make a final decision at the next board meeting scheduled for July 9-12.

The board is picking up the pace of its work after its first meeting was delayed by three months as a result of developed countries’ failure to appoint their members on time.

A person moves their belongings at a flooded residential complex following heavy rainfall, in Dubai, United Arab Emirates, April 18, 2024. REUTERS/Amr Alfiky

The board was forced to tackle logistical challenges on the final day when stormy weather in Abu Dhabi moved the deliberations online. Scientists have warned that the Arabian peninsula will suffer more heavy rain at 1.5C of global warming than it did in pre-industrial times, and recent floods in the neighbouring city of Dubai shut down the airport and caused major economic damage.

Lund said the progress made at the first meeting “in some respects was surprising”, but there is still a long way to go before money reaches climate-vulnerable communities. “We have clear instructions, but translating that blueprint into contracts, roles, policies, locations, jobs and structures is going to be a shared headache for all board members over the course of this year and beyond,” he added.

Civil society at the table

Civil society representatives argued there is a need to broaden the direct participation of frontline communities struggling with climate impacts in the fund’s operations. The first board meeting limited participation to two people per UN stakeholder group – some of which represent millions, even billions, of people – such as Indigenous Peoples, youth, and women and girls.

“This fund must be different to fulfill the expectation – people-centered, human rights-based, gender-responsive – from the start, with meaningful participation and engagement throughout,” said Liane Schalatek, associate director of the Heinrich in Washington who attended the board meeting.

G7 offers tepid response to appeal for “bolder” climate action

“Board members all stressed the importance of civil society observer and communities engagement and welcomed it,” she added. “Now that verbal support needs to be operationalised, including through dedicated financial support.”

After sorting through all of its procedural matters, the board will start addressing thornier issues such as how to disburse money and how to fill its coffers with more cash. So far, it has garnered about $660 million in pledges.

While board members hope to have the fund’s structure in place by COP29 this November, it is not expected to start handing out money until 2025.

(Reporting by Matteo Civillini; editing by Joe Lo and Megan Rowling)

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Loss and damage board speeds up work to allow countries direct access to funds

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Indigenous groups warn Amazon oil expansion tests fossil fuel phase-out coalition

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Indigenous leaders from across the Amazon have warned that stopping the expansion of oil drilling into their territories will be a crucial test for a growing international coalition committed to transitioning away from fossil fuels.

As 60 countries discussed at a landmark conference in Santa Marta, Colombia, pathways to end the world’s reliance on fossil fuels, Indigenous groups said the process risks losing credibility if governments continue opening new oil frontiers in the Amazon.

Their central demand was the establishment of fossil fuel “exclusion zones” across Indigenous territories and biodiverse areas of the rainforest, permanently barring new oil and gas expansion in one of the world’s most critical ecosystems. Indigenous representatives proposed establishing protected “Life Zones”, which they said would provide legal safeguards against governments and companies seeking to expand extraction into their lands.

But Indigenous delegates left the conference frustrated as the final synthesis report drafted by co-chairs Colombia and the Netherlands failed to include the proposal.

In a statement at the end of the conference, Patricia Suárez, from the Organization of Indigenous Peoples of the Colombian Amazon (OPIAC), said formally declaring Indigenous territories – especially those inhabited by peoples in voluntary isolation – as exclusion zones for extractive industries was “an urgent measure”.

“If the heart of the conference does not begin there, it risks remaining a set of good intentions that fails to respond to either science or our Indigenous knowledge systems,” she added.

Pushing for a new oil frontier

Campaigners say the pressure on the Amazon is intensifying just as scientists warn the rainforest is nearing irreversible collapse. Around 20% of all newly identified global oil reserves between 2022 and 2024 were discovered in the Amazon basin, fuelling renewed interest from governments and companies seeking to develop the region as the world’s next major oil frontier.

Ecuador has moved ahead with the auction of new oil blocks in the rainforest, while the country’s right-wing president Daniel Noboa has promoted the region as a “new oil-producing horizon” and backed efforts to expand fracking with support from Chinese companies.

    In Santa Marta, a coalition of seven Indigenous nations from Ecuador issued a declaration condemning the government, which did not participate in the conference.

    “While the world talks about energy transition, our government is pushing for more oil in the Amazon,” said Marcelo Mayancha, president of the Shiwiar nation. “Throughout history, we have always defended our land. That is our home. We will forever defend our territory.”

    Indigenous groups also warned that Peru – another South American nation absent from the conference – plans to auction new oil blocks in the Yavarí-Tapiche Territorial Corridor, a highly sensitive region along the Brazilian border that contains the world’s largest known concentration of Indigenous peoples living in voluntary isolation.

    COP30 host under scrutiny

    Indigenous leaders also criticised Brazil, arguing that despite its international climate leadership, the country is simultaneously advancing major new oil projects in the Amazon region.

    Luene Karipuna, delegate from Brazil’s coalition of Amazon peoples (COIAB), said the oil push threatens the stability of the rainforest. Not far from her home, in the northern state of Amapá, state-run oil giant Petrobras is currently exploring for new offshore oil reserves off the mouth of the Amazon river.

    Brazil participated in the Santa Marta conference and was among the countries that first pushed for discussions on transitioning away from fossil fuels at COP negotiations. Yet the country is also planning one of the largest expansions in oil production in the world, according to last year’s Production Gap report.

    Veteran Brazilian climate scientist Carlos Nobre told Climate Home that the country’s participation at the Santa Marta conference contrasted with its oil and gas production targets. “It does not make any sense for Brazil to continue with any new oil exploration,” he said, and noted that science is clear that no new fossil fuels should be developed to avoid crossing dangerous climate tipping points.

    He added that the Brazilian government faces pressures from economic sectors, since Petrobras is one of the countries top exporting companies. “They look only at the economic value of exporting fossil fuels. Brazil has to change.”

    The COP30 host also promised to draft a voluntary proposal for a global roadmap away from fossil fuels, which is expected to be published before this year’s COP31 summit.

    “In Brazil, that advance has caused so many problems because it overlaps with Indigenous territories. Companies tell us there won’t be an impact, but we see an impact,” Karipuna said. “We feel the Brazilian government has auctioned our land without dialogue.”

    For Karipuna and other Indigenous leaders, establishing exclusion zones across the Amazon is no longer just a regional demand, but a prerequisite to prevent the collapse of the rainforest.

    “That’s the first step for an energy transition that places Indigenous peoples at the centre,” she added.

    The post Indigenous groups warn Amazon oil expansion tests fossil fuel phase-out coalition appeared first on Climate Home News.

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    Kenya seeks regional coordination to build African mineral value chains

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    African leaders have intensified calls for governments to stop exporting raw minerals and step up efforts to align their policies, share infrastructure and coordinate investment to add value to their resources and bring economic prosperity to the continent.

    In a speech to the inaugural Kenya Mining Investment Conference & Expo in Nairobi this week, Kenyan President William Ruto became the latest African leader to confirm the country will end exports of raw mineral ore. The East African nation has deposits of gold, iron ore and copper and recently launched a tender for global investors to develop a deposit of rare earths, which are used in EV motors and wind turbines, valued at $62 billion.

    Kenya is among more than a dozen African nations that have either banned or imposed export curbs on their mineral resources as they seek to process minerals domestically to boost revenues, create jobs and capture a slice of the industries that are producing high-value clean tech for the energy transition.

      “For too long we have extracted and exported raw materials at the bottom of the value chain, while others have processed, refined, manufactured and captured the greater share of economic value,” Ruto told African ministers and stakeholders gathered at the mining investment conference in Nairobi.

      As a result, Africa currently captures less than 1% of the value generated from global clean energy technologies, he said. To address this, Kenya, in collaboration with other African nations, “will process our minerals here in the continent, we will refine them here and we will manufacture them here”, he added.

      Mineral export restrictions on the rise

      Africa is a major supplier of minerals needed for the global energy transition. The continent holds an estimated 30% of the world’s critical mineral reserves, including lithium, cobalt and copper. The Democratic Republic of Congo produces roughly 70% of global cobalt, a key ingredient in lithium-ion batteries, while countries such as Guinea dominate bauxite production, and Mozambique and Tanzania hold significant graphite deposits.

      But African governments have struggled to attract the investment needed to turn their vast mineral wealth into a green industrial powerhouse. Recently Burundi, Malawi, Nigeria and Zimbabwe are among those that have resorted to banning the export of unrefined minerals to incentivise foreign companies to invest in value addition locally.

      Outdated geological data limits Africa’s push to benefit from its mineral wealth

      This week, Zimbabwe exported its first shipments of lithium sulphate, an intermediate form of processed lithium that can be further refined into battery-grade material, from a mine and processing plant operated by Chinese company Zhejiang Huayou Cobalt.

      After freezing all exports of lithium concentrate – the first stage of processing – earlier this year, the government introduced export quotas and will ban all exports from January 2027.

      Export restrictions on critical raw materials have grown more than five-fold since 2009, found a report by the Organisation for Economic Co-operation and Development (OECD) published this week. In 2024, a more diverse group of countries, including many resource-rich developing economies in Africa and Asia, introduced restrictions, including Sierra Leone, Nigeria and Angola.

      This is “a structural shift in the wrong direction,” Mathias Cormann, the OECD’s secretary-general, told the organisations’ Critical Minerals Forum in Istanbul, Turkey, this week.

      “We understand the motivations: building local industries, managing environmental impacts, capturing greater value domestically. But our research is quite clear. Export restrictions distort investment, reduce volumes and undermine supply security often while delivering limited gains in value added,” he said.

      In-country barriers to success

      Thomas Scurfield, Africa senior economic analyst at the Natural Resource Governance Institute, told Climate Home News that export restrictions “can look like a promising route to local value addition” for cash-strapped African mineral producers but have “rarely worked” unless countries already have reliable energy, infrastructure and competitive costs for processing.

      “Without those conditions, bans may simply push companies to scale back mining rather than scale up processing,” he said.

      Alaka Lugonzo, partnerships lead for Africa at Global Witness, identified gaps in practical skills and infrastructure as other major barriers. “You need engineers, geologists, marketers,” Lugonzo said, warning that graduates are increasingly unable to match the pace of industry change.

      On infrastructure, she said that plentiful and stable energy supplies are vital and while Kenya has relatively robust road networks, they are insufficient for industrial-scale operations.

      “Meaningful value addition and real industrialisation requires heavy machinery… and you will need better infrastructure,” she said, highlighting persistent last-mile challenges in mining regions where “there’s no railway, there’s no electricity, there’s no water”.

      Export capacity is another concern, she said, particularly whether existing port systems could handle increased volumes of processed minerals.

      Regional approach recommended

      Scurfield said that through regional cooperation – including pooling supplies, specialising across different stages of refining and manufacturing, and building larger regional markets – “African countries could overcome many domestic constraints that make going alone difficult”.

      That’s what close to 20 African governments are working to deliver as part of the Africa Minerals Strategy Group, which was set up by African ministers and is dedicated to foster cooperation among African nations to build mineral value chains and better benefit from the energy transition.

      Africa urged to unite on minerals as US strikes bilateral deals

      Nigerian Minister of Solid Minerals Dele Alake, who chairs the group, said “true collaboration” between countries, including aligning mining policies, sharing infrastructure, coordinating investment strategies and promoting trade across the continent, will create the conditions for long-term investments that could turn Africa into “a formidable and competitive force within the global mineral supply chain”.

      “The time has come for Africa to redefine its place within the global mineral economy and that transformation must begin with regional integration and regional cooperation,” he told the mining investment conference in Nairobi.

      Lugonzo of Global Witness agreed, saying that value-addition would benefit from adopting a continental perspective. “Why should Kenya build another smelter when we can export our gold to Tanzania for smelting, and then we use the pipeline through Uganda to take it to the port and we export it?” she asked.

      To facilitate that, there is a need to operationalise the Africa Free Trade Continental Agreement (AFTCA), she added. “That agreement is the only way Africa is going to move from point A to point B.”

      The post Kenya seeks regional coordination to build African mineral value chains appeared first on Climate Home News.

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      Key green shipping talks to be held in late 2026

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      The future of the global shipping industry – and its 3% share of global emissions – will be decided in three weeks of talks in the third quarter of this year, after a decision taken in London on Friday.

      At the International Maritime Organisation (IMO) headquarters this week, governments largely failed to substantively negotiate a controversial set of measures to penalise polluting ships and reward vessels running on clean fuels known as the Net-Zero Framework. The green shipping plan has been aggressively opposed by fossil fuel-producing nations, in particular by the US and Saudi Arabia.

      This week, countries delivered statements outlining their views on the measures in a session that ran from Wednesday into Thursday. Then, late on Friday afternoon, they discussed when to negotiate these measures and what proposals they should discuss.

      After a lengthy debate, which the talks’ chair Harry Conway joked was confusing, governments agreed to hold a week of behind-closed-door talks from 1 September to 4 September and from 23 November to 27 November.

      Following these meetings, which are intended to negotiate disagreements on the NZF and rival watered-down measures proposed by the US and its allies, there will be public talks from November 30 to December 4.

        Last October, talks intended to adopt the NZF provisionally agreed in April 2025 were derailed by the US and Saudi Arabia, who successfully persuaded a majority of countries to vote to postpone the talks by a year.

        Those talks, known as an extraordinary session, are now scheduled to resume on Friday December 4 unless governments decide otherwise in the preceding weeks. While this Friday session will be in the same building with the same participants as the rest of the week’s talks, calling it the extraordinary session is significant as it means the NZF can be voted on.

        Em Fenton, senior director of climate diplomacy at Opportunity Green said that the NZF “has survived but survival is not a victory” and called for it to be adopted later this year “in a way that maintains urgency and ambition, and delivers justice and equity for countries on the frontlines of climate impacts”.

        NZF’s supporters

        The NZF would penalise the owners of particularly polluting ships and use the revenues to fund cleaner fuels, support affected workers and help developing countries manage the transition.

        Many governments – particularly in Europe, the Pacific and some Latin American and African nations – spoke in favour of it this week.

        South Africa said the fund it would create is “the key enabler of a just transition” and its removal would take away predictable revenues from African countries. Vanuatu said that “we are not here to sink the ship but to man it”.

        Australia’s representative called it a “carefully balanced compromise”, as it was provisionally agreed by a large majority after years of negotiations, and warned that failing to adopt it would harm the shipping industry by failing to provide certainty.

        Santa Marta summit kick-starts work on key steps for fossil fuel transition

        Canada’s negotiator said that if it was weakened to appease its critics like the US and Saudi Arabia, this would disappoint those who think it is too weak already like the Pacific islands.

        A large group of mainly big developing countries like Nigeria and Indonesia did not rule out supporting the framework but called for adjustments to help developing countries deal with the changes. Nigeria called for developing countries to be given more time to implement the measures, a minimum share of the fund’s revenues and discounts for ships bringing them food and energy.

        According to analysis from the University of College London’s Energy Institute, the countries speaking in support of the NZF include five countries which voted with the US to postpone talks in October and a further ten countries which did not take a clear position at that time. Most governments support the NZF as the basis for further talks, the institute said.

        Opposition remains

        But a small group of mainly oil-producing nations said they are opposed to any financial penalties for particularly polluting ships.

        They support a proposal submitted by Liberia, Argentina and Panama which has proposed weakening emission targets and ditching any funding mechanism for the framework involving “direct revenue collection and disbursement”.

        Argentina argued that the NZF would harm countries which are far from their export markets and said concerns over that cannot be solved “by magic with guidelines”. They added that, as a result, the NZF itself needs to be fundamentally re-negotiated.

        The UCL Energy Institute said that just 24 countries – less than a quarter of those who spoke – said they supported Argentina’s proposal.

        While this week’s talks did not see the kind of US threats reported in October, their delegation did leave personalised flyers on every delegate’s desk which were described by academics, negotiators and climate campaigners as misleading.

        One witness told Climate Home News that junior US delegates arrived early on Wednesday and placed flyers behind governments’ name plates warning each country of the costs they would incur if the NZF is adopted.

        The figures on a selection of leaflets seen by Climate Home News ranged from $100 million for Panama to $3.5 billion for the Netherlands. “They are trying to scare countries away from supporting climate action with one-sided information”, one negotiator told Climate Home News.

        A flyer left on Pakistan’s desk, shared by a witness with Climate Home News

        They added that the calculations, by the US State Department’s Office of the Chief Economist, ignore the fact that the money raised would be shared to help poorer countries’ transition as well as ignoring the economic costs of failing to address climate change.

        Tristan Smith, an academic representing the Institute of Marine Engineering, Science and Technology, told the meeting that the calculations were “opaque” and flawed as they overstate the contribution of fuel cost to trade costs.

        A US State Department Spokesperson said in a statement that they “firmly stand behind our estimates” which were shared “in good faith” and to “provide an additional tool to policymakers as they contemplate the true economic burden over the NZF”.

        The post Key green shipping talks to be held in late 2026 appeared first on Climate Home News.

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