The Pacific Innovation Forum for Climate and Environment (PIFCE) 1st - 3rd July, 2026

Brief overview

The Vanuatu Climate Loss and Damage Fund is a new Fund under the Ministry of Climate Change, established to provide support to grassroots individuals and communities to address the adverse impacts of climate change that address loss and damage.

 

Your organisation’s goals

Financial mechanisms for direct access to loss and damage funding.

Describe your innovation

Vanuatu is one of the first countries in the world to establish a Fund dedicated to financing Loss and Damage. This is directly in line with Vanuatu’s 2025 Loss & Damage Policy. Within the Fund, Vanuatu is developing multiple modalities to disperse funds, including small grants, cash transfer, insurance subsidies and more. The Vanuatu experiences can help other PICTs.

How is this solution is innovative?

No other country is exploring layered financing modalities to address climate losses and damages, including direct access cash transfers, insurance, grants and more to get money to the vulnerable people directly implementing response to both economic and non economic L&D. Vanuatu is also one of the first countries to apply to the Fund for Responding to Loss and Damage to capitalise the national Fund, including testing and trialing community led planning and response.

How can the innovation be replicated and scaled up in other PICTs?

Other PICTs may be interested in establishing National L&D Funds, or individual disbursement modalities. Vanuatu plans to share operational designs, legislation drafts, and governance models for the Fund which may be replicated.

How is the solution cost‑effective and affordable in the context of Pacific Island Countries and Territories (PICTs)?

Vanuatu’s Fund is supported by MFAT, and will soon include multiple sources of finance, including levies and investment income.

Locations (country, island, or community) where this solution has been piloted and/or implemented

Vanuatu, sanma, shefa, tafea, torba provinces.