Finance Secretary Ralph G. Recto has underscored that the Philippines is set to establish a gold standard for climate finance and action globally with the recent enactment of the Loss and Damage Fund (LDF) Board Act that enables its hosting of the Board.

“The LDF Board Act is one of many decisive actions we take to escalate our climate initiatives and solidify the Philippines’ leadership in championing the voices of those most impacted by climate change. We are determined for our hosting to set the gold standard for climate finance and action, not just across Asia and the Pacific, but around the globe,” the Finance Chief said.

The LDF is a global financial mechanism designed to provide support to countries’ response and recovery from losses and damages caused by climate change. Last July 9, 2024, the 26-member LDF Board selected the Philippines as its host.

On August 28, 2024, President Ferdinand R. Marcos, Jr. signed into law Republic Act No. 12019, or the LDF Board Act, which brings the Philippines a step closer to formalizing its hosting commitments.

Specifically, the law grants the Board with juridical personality and legal capacity in the Philippines.

It enables the Board to enter into contracts, acquire and dispose of property, institute legal proceedings, and negotiate with the World Bank (WB), which is the interim trustee and host of the Fund’s secretariat.

By hosting the LDF Board, the Philippines will play a leading role in helping attract significant support from developed countries and development partners to provide concrete financial contributions in averting, minimizing, and addressing losses and damages.

It will also serve as an avenue for the Philippines to showcase its game-changing initiatives, transformative reforms, and science-based innovations on adaptation and mitigation actions as well as disaster risk management aligned with its national plans and strategies.