President Ferdinand Marcos Jr. on Wednesday signed into law Republic Act 12019, or the Loss and Damage Fund (LDF) Board Act, according to Presidential Communications Office Secretary Cheloy Garafi.

The LDF is an international financial mechanism designed to provide support to climate-vulnerable countries recovering from losses and damage caused by climate change.

Garafil said the new law grants the Philippines a juridical personality and legal capacity in the Loss and Damage Fund Board.

“With the passage of RA 12019, the Board, as the governing body of the Fund, shall have the juridical personality with full legal capacity to contract, acquire, and dispose of immovable and movable property, as well as institute legal proceedings,” Garafil said.

The Board 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 as necessary for discharging its roles and functions.

In 2023, Environment Secretary Ma. Antonia Yulo-Loyzaga announced that the Philippines had secured a spot on the LDF.

Last July, Marcos announced that the country was elected to host the climate disaster fund board out of eight contenders.

“Hosting the LDF Board reinforces our dedication to inclusivity and our leadership role in ensuring that the voices of those most affected by climate change shall shape the future of international climate policies,” he said in a social media post on X (formerly Twitter) in July.

The decision was lauded by the Climate Change Commission (CCC).

“The unanimous decision by the LDF Board affirms the Philippines’ leadership under President Ferdinand Marcos Jr. in transformative climate action and demonstrates stakeholder confidence in the country’s commitment to constructively contribute towards global efforts to address climate change,” the CCC said.