stablished during the Conference of Parties (COP-27) in Egypt in 2022, the Loss and Damage Fund represents pivotal progress in addressing the financial challenges faced by nations vulnerable to climate change; the biggest externality of the 21st Century. This fund, specifically designed to support countries that are struggling with irreversible climate change impacts, acknowledges disproportionate effects on developing countries like Pakistan (among the 10 most vulnerable to climate change). Celebrated as a significant milestone in climate justice, its establishment came after years of advocacy by Third World nations. At the third meeting of the Board of the Fund for Responding to Loss and Damage, held in Baku, Azerbaijan, from September 18 to 20, the Fund reached a historic milestone by setting the stage for the first disbursements in 2025. This milestone includes converting nearly $800 million in pledges into actionable support advancing its operationalisation, electing the Fund’s executive director, and finalising arrangements with the World Bank to manage funds effectively. These developments underscore the Fund’s essential role in enhancing the global climate resilience.

As the chair of Group of 77 at COP-27, Pakistan played a dynamic role in the creation of the Loss and Damage Fund; responding to its acute vulnerability to climate change. In 2022, catastrophic floods affected 33 million people, including 8.2 million women of reproductive age, submerging a third of the country and highlighting the urgent need for such a fund. Pakistan’s proactive stance in advocating for the Loss and Damage Fund reflects the critical need for resources to tackle extensive losses and damages from frequent climate-led disasters across the country. The operationalisation of this fund is crucial for bolstering Pakistan’s climate resilience and protecting its most vulnerable groups, particularly women in rural and underdeveloped areas; where the impacts of climate change are the most pronounced.

As Pakistan strides toward climate resilience and gender equity, the effective operationalisation of the Loss and Damage Fund is more than a policy initiative. It’s a vital step in the global climate dialogue, which is crucial for addressing the disproportionate impacts of climate change on vulnerable populations. 

Despite the urgency, the Ministry of Climate Change and Environmental Coordination lacks institutional mechanisms needed to effectively access and manage the Loss and Damage Fund established at COP-27. This gap hinders the country’s ability to deploy these funds for projects aimed at managing climate-induced damage particularly that affecting vulnerable populations. To effectively address this challenge, Pakistan needs to establish a dedicated task force within the Ministry of Climate Change and Environmental Coordination. This task force, comprising experts in climate finance, adaptation, mitigation, policy development and gender-responsive actions should also include representatives from the Ministry of Finance, the National Disaster Management Authority, the Ministry of National Health Services, Regulations and Coordination and the Ministry of National Food Security and Research. The holistic approach will facilitate the development of a strategic plan, that clearly defines eligibility criteria for fund access, streamlines application procedures and establishes robust project monitoring and evaluation frameworks to ensure effective utilisation of funds.

Forging partnerships with international will be instrumental in enabling Pakistan to leverage global expertise and resources to ensure effective and transparent utilisation of the fund. By implementing these measures, Pakistan will not only secure the necessary financial resources but also significantly bolster its ability to build inclusive climate-resilient communities.

As Pakistan strides toward climate resilience and gender equity, the effective operationalisation of the Loss and Damage Fund is more than a policy initiative. It’s a vital step in the global climate dialogue, which is crucial for addressing the disproportionate impacts of climate change on vulnerable populations, especially women. Strengthening institutional frameworks, such as establishing a dedicated task force in the Ministry of Climate Change and Environmental Coordination will ensure strategic fund deployment and the development of policies that foster long-term climate resilience and inclusivity in the country. Pakistan’s participation in the COP-29, advocating for the swift operationalisation of the Loss and Damage Fund, showcases its commitment to global climate actions. This advocacy is crucial as it sets a precedent for other nations by promoting a collaborative approach to solve one of the most pressing issues of our time. Integrating immediate relief with sustainable development strategies will enhance Pakistan’s climate mitigation efforts.

The writer is a technical expert on gender and climate change at the National Commission on the Status of Women. She can be reached at naureen.naveed27@gmail.com