KATHMANDU — The United Nations Fund for Responding to Loss and Damage (FRLD) has provisionally allocated $20 million to help Nepal rebuild following catastrophic climate-induced flooding and landslides.
The emergency payout, approved during a board meeting on Thursday, marks the first-ever disbursement from the UN fund since its establishment. The disaster—triggered by massive monsoon rainfall and glacial events—killed over 1,400 people, left thousands missing, and caused widespread destruction to homes, schools, and critical hydropower infrastructure across Nepal and neighboring China.
While Nepali officials and policy experts welcomed the UN’s swift response, they cautioned that the allocation falls drastically short of total recovery needs. The Nepalese government estimates the total cost of reconstruction and rehabilitation at $4.7 billion.
“It’s a very small amount compared to what we lost,” said Maheshwar Dhakal, a senior official at Nepal’s Ministry of Forests and Environment. However, Dhakal emphasized the symbolic importance of the funding: “Releasing the money sends a significant message. This shows that the global community can take the right decision at the right time to help those who are most vulnerable to climate change.”
The Fund for Responding to Loss and Damage was established at the 2022 UN Climate Conference (COP27) following decades of advocacy by developing nations. These vulnerable countries contribute negligible amounts to global greenhouse gas emissions yet routinely bear the brunt of severe climate impacts.
While international donors have pledged over $820 million to the fund, demand vastly outweighs available resources. The board currently faces 176 funding requests from developing nations, totaling approximately $2.8 billion. Further support requests are scheduled for review at the board’s next meeting in December.
As of late September, Nepal had secured roughly $102 million in aid from domestic and international donors. To bridge the massive financial shortfall, Dhakal noted that Kathmandu is actively coordinating with regional partners, including India and China, as well as multilateral development banks to secure additional reconstruction loans and grants.
The precedent-setting payout comes just ahead of the upcoming UN Climate Summit in Turkey next month, where disaster financing and loss-and-damage mechanisms are expected to dominate negotiations.
