/file/attachments/orphans/GettyImages-2292849012_214111.jpg)
Nepal Receives First UN Climate Damage Fund Payout of $20 Million After Deadly Natural Disasters
The UN climate loss and damage fund agreed to provide Nepal with $20 million in aid following deadly August floods triggered by a climate-induced ice and rock avalanche, marking the fund's first-ever payout to any country amid rising concerns over natural disasters. [4] The August 26 flood killed about 1,500 people, with more than 5,000 still missing, and affected about 60,000 people from 15,000 families. [1]
Overview of the August Flood Disaster
The August 26 flood killed about 1,500 people and more than 5,000 are still missing. [1] The flood affected about 60,000 people from 15,000 families, according to official data. [1] The disaster was triggered by a climate-induced ice and rock avalanche that produced tsunami-like floods. [4] More than 1,400 people died in the event and over 5,000 were left missing. [5] The flood hit the Himalayan country in August. [4]
Economic Impact and Reconstruction Needs
The disaster caused losses estimated at about $2.7 billion to infrastructure including roads, bridges, schools and 13 hydropower plants. [1] Early official estimates show reconstruction bills could top $4.7 billion. [1] The UN climate aid accounts for less than 1% of what Nepal needs to cover the cost of the flood. [1] The decision does not mean that Nepal will immediately receive the funding, which amounts to less than 0.5 per cent of the government's US$4.78 billion estimate for reconstruction. [5]
Nepal receives first $20 million payout from UN climate damage fund after deadly August floods. — Source: scmp
UN Climate Fund's First Payout Decision
The United Nations’ climate loss and damage fund moved to provide US$20 million in aid sought by flood-stricken Nepal – the first time it has set aside money for any country. [4] In an extraordinary meeting on Thursday, the fund’s board agreed to earmark the modest sum for the Himalayan country. [4] Camila Minerva Rodriguez Tavarez, the Dominican co-chair of the board, called the outcome “truly historic” and thanked members for “allowing us to act promptly and have a response to Nepal”. [4] The support from the Fund for Responding to Loss and Damage was to help address the severe damage caused by climate-related disaster. [1] US$20 million is the maximum amount countries can request in a single application. [5] Nepal will first have to present a proposal for the board's approval, with no firm timeline for the process. [5]
Nepal's Request and Government Response
Nepal had sought the assistance in a letter to the FRLD in August, less than a week after the flood. [1] Prime Minister Balendra Shah, 36, in his maiden speech to the United Nations in September, said Nepal's disaster served as a warning to the world and he blamed climate change for the flood despite his country's negligible emissions. [1] Reacting to the news, Nepal's finance minister Swarnim Wagle told AFP that the fact that they could convene this emergency meeting in response to our letter and commit US$20 million of grant money is very welcome. [5] Wagle said that Nepal is a test case for how serious the world is in helping developing and fragile countries to respond to the loss and damage associated with climate change. [5]
Debate Over Precedent and Legal Obligations Regarding Natural Disasters
During the meeting, some developed countries stressed the Nepal decision should be seen as exceptional, not as a template for the fund's long-term future. [5] The European Union's Jan Dusik said this is not a precedent on one hand, but on the other it provides a learning for the development of the long-term model of the fund. [5] Developing countries hit back, with Pakistan's Ali Tauqeer Sheikh saying he heard Jan saying that we are open for learning, but not in setting precedent, and asking not to define the boundaries for learning. [5] It is a landmark first step, at the same time it is also a proof of how far the fund still has to go, according to Harjeet Singh, founding director of the Satat Sampada Climate Foundation and global convenor of the Fill the Fund campaign. [5] Nikki Reisch, director of the Climate & Energy Program at the Center for International Environmental Law, said she hoped the Nepal decision will really be a springboard for demands that the fund and responses to escalating climate impacts be grounded in legal obligations. [5]
Broader Context of International Aid
The UN and its humanitarian partners launched a US$49.6 million emergency appeal after the Nepal disaster, and the United States announced US$31 million in new flood recovery support in September. [5] The creation of the Fund for Responding to Loss and Damage was hard-won at the UN climate conferences of 2022 and 2023 by developing countries, many of them among the least responsible for climate change yet most vulnerable to its impacts. [5] Since it became operational, critics have faulted both meagre pledges from rich nations of US$822 million to date and the fact no money has been disbursed so far. [5] Last year after part of Jamaica was destroyed by the worst hurricane in its history, the fund's French co-chair at the time told AFP that it was not meant to provide a humanitarian response but was aimed at the next stage. [5]
What to watch next is whether Nepal presents a detailed proposal for final board approval and how the fund handles future requests as a test case for responses to climate impacts.
