UN Climate Fund Earmarks First-Ever US$20 Million for Flood-Hit Nepal

Nepal set to receive first-ever US$20 million payout from UN climate damage fund

The UN climate loss and damage fund’s board has agreed to earmark US$20 million for Nepal, marking the first time the fund has set aside money for any country.

Nepal must provide a proposal to receive the funding, according to the fund’s announcement. The fund moved to provide the aid sought by flood-stricken Nepal in what it described as a key test of its credibility.

Funding follows deadly floods

The decision follows floods that hit Nepal in August. The floods were triggered by a climate-induced ice and rock avalanche, according to the fund’s board, which said the disaster killed more than 1,400 people and left over 5,000 missing.

At an extraordinary meeting on Thursday, the board agreed to earmark the sum for the Himalayan country. Camila Minerva Rodriguez Tavarez, the Dominican co-chair of the board, called the outcome “truly historic”. She thanked members for “allowing us to act promptly and have a response to Nepal”.

Amount below reconstruction estimate

The US$20 million allocation amounts to less than 0.5 per cent of Nepal’s US$4.78 billion reconstruction estimate. The sum is therefore modest compared with the reconstruction estimate cited by the fund. Even so, the decision establishes the first country-specific amount set aside by the climate loss and damage fund. The requirement for Nepal to submit a proposal remains the next step before it can receive the funding.

Source: South China Morning Post