Nepal is expected to receive $20 million from a United Nations climate fund to support recovery efforts following devastating floods in August that killed approximately 1,500 people and left more than 5,000 missing.
This marks the first time the fund has earmarked money for a country affected by a climate disaster, representing a significant development for an international mechanism established to help vulnerable nations cope with climate-related damage.
The Fund for Responding to Loss and Damage (FRLD) agreed to reserve the amount during an emergency meeting on Thursday, October 22, according to the Nepalese government.
The country's environment ministry said the funding was intended to help address the extensive destruction caused by the climate-related disaster, Reuters reported.
However, Nepal has not yet received the money. It must first submit a detailed funding proposal, which the fund's board will need to approve before the payment can be released.
Why is Nepal receiving climate funding?
The disaster began on August 26 when an avalanche of ice and rock struck near Nepal's border with China's Tibet region, triggering destructive floods downstream.
The floods affected approximately 60,000 people belonging to 15,000 families. They also damaged roads, bridges, schools and 13 hydropower plants.
Nepal estimates the damage to infrastructure at around $2.7 billion, while the overall expenses for recovery and reconstruction could surpass $4.7 billion.
The $20 million allocation represents less than 1 per cent of the estimated reconstruction costs, underscoring the significant difference between the available assistance and the scale of the devastation.
Following the disaster, Nepal sought international assistance and called for compensation from some of the world's largest polluters, including India.
However, Foreign Minister Shisir Khanal clarified in September that the government had not formally requested compensation from India, China or the United States. Instead, he urged the international community to acknowledge the broader consequences of climate change.
A growing climate fund
The fund was established after years of demands from developing nations, which argue that they suffer severe climate-related consequences despite contributing relatively little to global emissions.
Nepal's case will serve as an important test of whether the fund can provide assistance swiftly following disasters, rather than leaving vulnerable countries waiting through lengthy funding procedures.
The decision to earmark money through an emergency process could also influence how similar urgent requests are handled in the future.
The announcement comes ahead of COP31, the United Nations climate conference scheduled to take place in Antalya, Türkiye, from November 9 to 20. Financial support for countries suffering climate-related losses is expected to remain a key subject of international climate discussions.
Although the allocation represents a significant development for Nepal, the country still faces the much larger task of rebuilding damaged communities and infrastructure.
