For the first time since it was operationalised at COP 28, the United Nations’ (UN) Loss and Damage Fund has provisionally approved $20 million plus $1.6 million in oversight fees for Nepal on Thursday for the damage caused during August’s Bhote Koshi River floods, which killed at least 1,000 people and left over 5,000 missing.
“However, setting money aside is not the same as delivering it. The priority must now be rapid disbursement, with transparent safeguards that enable rather than delay assistance. The funding is expected to cover about 0.7% of the costs of the August Nepal floods, which preliminary estimates suggest could be around US$2.56 billion. The co-chairs received a communication from the Government of Nepal via its senior signatory national focal point on August 31. At just 0.7% of estimated losses, this support exposes the enormous gap between climate impacts and available finance.
For India and other developing countries facing similar climate-induced disasters, this remains an important milestone in accessing disaster finance, experts said. Anjal Prakash, Professor of Public Policy at FLAME University and an IPCC author, said Nepal’s allocation was an important recognition of the need to pay for climate justice. We need a permanent emergency window, simpler access procedures and predictable contributions from wealthy countries,” he said, stating recovery support should reach affected families, restore essential services and protect livelihoods without adding to national debt.
“No country should have to endure a catastrophe and wait seven weeks, through historic letters and relentless pressure, just to unlock the Fund’s first-ever emergency meeting.
Harjeet Singh, Global Convenor, Fill the Fund campaign and Founding Director, Satat Sampada Climate Foundation, said Thursday marked a historic day in responding to Nepal. We must set up a permanent rapid-response system that moves support in days, not months,” he said.
This is the maximum amount that can currently be requested for a single project.
Experts said Nepal will still have to formally apply for this funding, and the Board will consider the request at its next meeting in December.
