FRLD earmarks $20 million for Nepal, first loss‑damage payout

The Fund for Responding to Loss and Damage (FRLD) has provisionally set aside $20 million for Nepal, making it the first country to receive international loss‑and‑damage funding. The board approved the sum after an emergency meeting requested by Nepal and other developing nations. Nepal must submit a formal application before the board reviews the request at its December meeting. Government estimates put the flood’s economic loss at at least $2.69 billion and the reconstruction need at a minimum of $4.71 billion, so the approved amount is under one per cent of the assessed requirement. The funds follow the August 26 flash floods triggered by a rock‑and‑ice avalanche in Rasua district, an event scientists link to climate‑change‑driven processes. The disaster killed more than 1,300 people and left over 5,000 missing. The FRLD, created in 2022 after years of negotiations and launched at COP28, aims to help small and vulnerable nations cope with climate‑related damage. As of June, the fund had logged 176 requests from 119 countries totaling $2.8 billion, each request ranging between $5 million and $20 million. Ajay Mathur, former director‑general of the International Solar Alliance, called the allocation a “landmark operational step” but warned it covers less than 0.5 per cent of Nepal’s estimated $5 billion reconstruction cost and will be released only after further project proposals are cleared. ## Context The allocation shows how the new loss‑and‑damage mechanism is beginning to work, but also highlights the gap between needed resources and what the fund can currently disburse, underscoring the ongoing financial challenges for climate‑hit developing countries.