KATHMANDU: The Fund for Responding to Loss and Damage (FRLD) has approved a grant of US$20 million, equivalent to approximately Rs 3 billion, to support relief and reconstruction efforts in Nepal following devastating floods in the Bhote Koshi and Trishuli river regions.
The grant was approved during a special meeting of the fund, according to the Ministry of Agriculture, Forest and Environment.
The Government of Nepal formally sought financial assistance on August 31 to address the extensive human and economic losses caused by the floods. The disaster affected more than 60,000 people across approximately 15,000 households.
Dr. Maheshwar Dhakal, joint secretary at the ministry, said the request was approved following extensive discussions among board members representing both developed and developing countries.
To receive the grant, Nepal must now submit a detailed project proposal outlining plans to assist communities affected by the floods.
Preliminary assessments indicate that the disaster claimed approximately 1,500 lives, while more than 5,000 people remain missing. Initial estimates put the economic damage at around US$2.7 billion, with total reconstruction costs projected to reach US$4.7 billion.
The approval marks an important step towards supporting Nepal’s recovery and strengthening the resilience of vulnerable communities facing climate-related disasters. It is also expected to contribute to broader efforts to advance climate justice, particularly for developing countries that bear significant losses from climate change despite having limited resources to respond.
Established under the United Nations Framework Convention on Climate Change (UNFCCC), the FRLD was agreed upon at COP27 and operationalized at COP28. The fund is designed to provide financial assistance to economically vulnerable developing countries experiencing climate-related losses and damage, including both economic and non-economic impacts.