President Marcos has signed into law Republic Act (RA) No. 12019, or the "Loss and Damage Fund Board Act", which grants juridical personality and legal capacity to the Loss and Damage Fund (LDF) Board that will respond to loss and damage due to climate change.

The President signed the new law on Wednesday, Aug. 28.

Under the measure, the Board, as the governing body of the Fund, shall have juridical personality with the full legal capacity to contract, acquire, and dispose of immovable and movable property, as well as institute legal proceedings.

It will also have the legal capacity to negotiate, conclude, and enter into a hosting arrangement with the World Bank as interim trustee and host of the Fund’s secretariat, and undertake activities to fulfill its roles and functions.

As of July this year, the Loss and Damage Fund, which is a new financing scheme, has $679.7 million in pledges from the European Union and at least 20 other countries.

The Philippines secured a seat in the inaugural Loss and Damage Fund Board at the 28th United Nations Climate Change Conference (COP28) in Dubai in December last year. Seven months later, President Marcos announced that the country was elected to host the Board, out of seven other contenders.

"[We are] honored to have a seat on the Board itself, ensuring that the Philippines will be a formidable voice in promoting and advancing global climate action – an issue of critical interest to the country," he said in July.

Marcos has explained that hosting the LDF Board reinforces the country's dedication to inclusivity and its leadership role in "ensuring that the voices of those most affected by climate change shape the future of international climate policies."

As a party to the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement, the Philippine government lauds the creation of a fund for responding to loss and damage under previous climate conferences and agreements.

The government welcomes the Fund’s establishment to finance and assist the most vulnerable developing countries’ response and recovery from losses and damages caused by climate change.

To advance climate and disaster risk resilience, the government adopts a whole-of-government approach in creating and implementing effective policy frameworks and mobilizing broad and innovative sources of climate financing to address loss and damage.

It also supports the hosting of the Governing Board of the Fund in the Philippines to accelerate access to critical climate finance and investments for future-proofing the economy and ensuring sustainable and inclusive growth for all Filipinos.