Climate Fund Secured
Summary
The Fund for Responding to Loss and Damage will provide US$20 million in grant assistance to Nepal for rehabilitation and reconstruction after the Bhotekoshi flood. The funding marks a historic breakthrough for Nepal’s push for climate justice and wider access to climate finance.
Key Points
- The Fund for Responding to Loss and Damage has approved US$20 million in grant assistance for Nepal under the Barbados Implementation Modality framework.
- The money will support rehabilitation and reconstruction in areas devastated by the Bhotekoshi flood, though it falls far short of the estimated recovery cost.
- Prime Minister Balendra Shah urged stronger climate justice and grant-based financing for Nepal in his address to the 81st UN General Assembly.
- Nepal must still complete proposal and approval steps before the funds are fully secured, and the government is expected to seek more climate finance from other mechanisms.
