Nepal first to receive $20 million from global loss and damage fund
· World · Indian Express, Hindustan Times
The Fund for Responding to Loss and Damage (FRLD), created in 2022, provisionally earmarked $20 million for Nepal at an emergency board meeting convened at the request of developing countries. Nepal's government estimated economic loss and damage from August flash floods at least $2.69 billion, with reconstruction needs of a minimum $4.71 billion. The approved amount represents less than one per cent of the assessed requirement, though it is the largest single-event sum the FRLD can currently approve. Nepal was devastated by massive floods following a rock and ice avalanche on August 26 in the northeastern district of Rasua, an incident scientifically assessed to be a result of climate change induced processes. The Board also decided Nepal must make a formal application for funding requests, which will be considered at the Board's next meeting in December.
Why it matters
The FRLD's decision provides Nepal with immediate, though insufficient, financial relief for recovery from the catastrophic floods, marking the first disbursement from the globally funded loss and damage mechanism. Nepal's government faces a substantial funding gap, needing billions more than the $20 million provisionally set aside.
Read the original report — Indian Express
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