Kathmandu: The Fund for Responding to Loss and Damage (FRLD), the United Nations fund for climate-driven loss and damage, is considering setting aside $20 million to support Nepal's response to the devastating floods triggered by an ice-and-rock avalanche in August. The proposal was placed before the Fund's first extraordinary board meeting, held virtually on Thursday, October 22. Yaani, $20 million is $2 crore — against damage Nepal estimates at about $2.7 billion, yaani $270 crore.

Source: Nepal on the Web

Under the proposed decision, the Fund would provisionally reserve $21.6 million from its available resources — $20 million for possible support to Nepal and $1.6 million for oversight and administrative costs. The money has not been released to Nepal. Nepal's national focal point would first be invited to submit a detailed funding request explaining how the assistance would be used, and the board would then review and approve that request at a future meeting.

The case could become a pilot for a new emergency mechanism allowing disaster-affected countries to request assistance outside the Fund's regular application period. Climate Home News reported, in a motion summary carried by ScoopFeeds, that it would be the first time the FRLD — established in 2023 — has set aside money for a specific disaster.

Source: Climate Home News via ScoopFeeds

Nepal sought urgent assistance after the August 26 disaster, when flash floods following a catastrophic rock-ice avalanche in the Himalayan border region swept through the Bhotekoshi-Trishuli-Narayani river system. Carbon Brief, citing Nepal's disaster management authority, says the flooding killed more than 1,400 people, with total damage and loss put at $2.7 billion and recovery and reconstruction needs at $4.8 billion. On those figures, the $20 million — the maximum currently allowed for a single request — covers about 0.7% of the damage and loss, and about 0.3% of recovery needs.

Source: Carbon Brief

Nepal's climate negotiator Raju Pandit Chhetri told Carbon Brief the $20 million request was for rapid response, adding: “That money is going to be a peanut if it was to be invested into reconstruction.” No funding has yet been paid out of the fund to developing countries since it was established, according to Carbon Brief.