A disagreement over the World Bank’s role in administering climate aid is complicating efforts to design an international fund for people who are feeling the worst effects of rising temperatures.
The tension stems from a provision in the landmark agreement to create the aid program known as loss and damage, reached at last year’s COP28 climate talks, that called on the World Bank to host the fund’s secretariat.
Those discussions have gotten off to a bumpy start, with the bank raising objections to technical aspects of governing the fund, such as authorizing the disbursement of money. Bank officials say that should be done by the fund’s supervisory board, a panel of 26 members representing developed and developing countries, the fund’s donors and potential recipients.
During a meeting Friday between bank staff and board members, the board expressed “deep reservations” about the bank’s approach, one board member told E&E News, saying it appears the bank is trying to avoid legal risks associated with hosting the fund.
