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The adoption of the Fund for responding to Loss and Damage (FRLD) at COP28 in Dubai marked a significant achievement for climate-vulnerable developing nations, who have long advocated for such a financing mechanism as a matter of climate justice. While initial pledges from 18 countries and the EU totaling $661 million were welcomed, the core operational policies for the Fund, which will determine its effectiveness and access for the most vulnerable communities, remain unresolved, with crucial discussions set for COP29 in Baku. Developed countries’ preference for voluntary contributions raises concerns about the Fund's long-term financial stability, especially as the estimated needs for loss and damage may reach $671 billion annually by 2030. The selection of Ibrahima Cheikh Diong as the inaugural Executive Director emphasises the need for innovative funding approaches, while the Board faces challenges in solidifying a coherent vision and operational strategy for the Fund that addresses the urgent needs of developing nations. Ultimately, the success of the FRLD will depend on its ability to implement a robust, equitable, and forward-thinking funding model that genuinely prioritises the most affected communities.