The United Nations’ Fund for Responding to Loss and Damage has provisionally set aside US$21.6 million for Nepal. The fund’s board made the decision on October 22 at its first-ever extraordinary meeting. The meeting was called to deal with Nepal’s request after the August 26 Bhotekoshi floods.
The money is not in Nepal’s account yet. Nepal has to submit a funding proposal, and the board must approve it before anything is released.Provisionally set aside is the accurate phrase, not received.
How the request came about
On August 26,a rock-and-ice avalanche in the Himalayan border region set off floods along the Bhotekoshi-Trishuli river system. Settlements, infrastructures and livelihoods were badly hit, especially in Rasuwa,Nuwakot and Dhading. It resulted in 1400+ deaths and thousands missing.
On August 31, Agriculture, Forests and Environment Minister Gita Chaudhary and Finance Minister Swarnim Wagle wrote to the fund asking for urgent help. The board then agreed to a special process that lets Nepal submit a request under the fund’s existing framework, the Barbados Implementation Modalities (BIM), outside the usual application period. The fund describes this as a pilot for responding more quickly to urgent needs.
What the fund is
The Fund for Responding to Loss and Damage was set up through the UN climate talks to help vulnerable developing countries deal with climate harm that cannot be fully prevented by cutting emissions or adapting. Examples include damaged homes and infrastructure and lost livelihoods.
For a country like Nepal, where floods, landslides and mountain hazards cause heavy damage, it matters a great deal. The fund has also been criticised for having limited money compared with the scale of global climate damage, and for how long applications take.
Background: why it is a first
This is the first time the fund’s board has provisionally set aside money for a country through an extraordinary process. It is also the fund’s first decision of this kind, which is why it is being closely watched.
What happens next
Nepal has to prepare a proposal that follows the fund’s rules and goes through technical assessment. Officials have said priorities will follow the government’s damage and needs assessment. The final use of the money will depend on the approved proposal.
