Nepal to receive 20 million US dollars in compensation for climate change-related loss and damage

KATHMANDU:- The United Nations’ fund for addressing loss and damage related to climate change has taken action regarding the impacts of climate change being experienced in Nepal. This decision has established a global precedent, fulfilling Nepal’s demand for climate justice.

On the  26 of August, a massive glacial flood surged through the Bhote Koshi and Trishuli rivers after a section of the Langtang Lirung mountain broke off and collapsed due to high temperatures in Nepal’s northern region. The scale of the destruction caused is unimaginable. Approximately 1,500 people lost their lives in this disaster, while more than 5,700 remain missing. Over 60,000 individuals from nearly 15,000 households have been affected.

Following a special decision made during a meeting of the Loss and Damage Fund held on October 22, Nepal is set to receive a grant of 20 million US dollars—equivalent to approximately three billion Nepali rupees. On behalf of the Government of Nepal, Finance Minister Dr. Swarnim Wagle and Minister for Agriculture, Forests, and Environment Geeta Chaudhary had sent a letter to the Fund on August 31, asserting that the glacial floods in the Bhote Koshi and Trishuli rivers were a consequence of climate change.

Minister Gita Chaudhary stated that this achievement was made possible through the collective efforts of the Government of Nepal, the international community, development partners, the private sector, non-governmental organizations, and the media sector toward immediate relief, rehabilitation, and reconstruction.

Dr. Maheshwar Dhakal—spokesperson for the Ministry of Agriculture, Forestry and Environment and Nepal’s national focal point for the fund—states that the establishment of the Loss and Damage Fund to address the climate change-related suffering in Nepal is, in itself, a historic step.

He, who also serves as an alternate member of the Fund, stated, “The Fund’s stance following the glacial flood in the Bhote Koshi demonstrates its support for Nepal; this represents a significant stride forward in Nepal’s pursuit of climate justice.” According to him, the consensus reached among the Asia-Pacific, African, Eastern European, Latin American and Caribbean, and Western European and other member nations signifies that the world stands with Nepal.

This decision has resolved the uncertainty surrounding the implementation of the initiative—a situation that had been complicated by the Fund’s own lack of strength and the indifference shown by developed nations. According to Dhakal, the Fund’s decision sends a message to developed countries to contribute funds, while also demonstrating that the Fund acts impartially during disasters and possesses the capacity to provide assistance.

The 47th Board Meeting of the Adaptation Fund has approved three project concept notes proposed by Nepal aimed at mitigating the impacts of climate change and enhancing adaptive capacity. These include projects focused on the conservation of ecosystems in the Koshi region, the strengthening of early warning systems for floods and landslides in the Hindu Kush-Himalaya region, and the enhancement of climate resilience among local communities in Lumbini Province.

Minister for Agriculture, Forestry, and Environment Gita Chaudhary stated that the approval of all three project proposals from Nepal is a significant achievement, especially given the growing demand for financial resources for climate adaptation alongside limited availability.

According to him, this will help in managing the impacts of climate change, reducing the risk of natural disasters, and alleviating the economic burden on the environmental sector. The ‘Green Koshi’ project will be implemented by the National Trust for Nature Conservation. The project has a budget equivalent to 9,927,750 US dollars.

Similarly, the International Centre for Integrated Mountain Development (ICIMOD) will implement the ‘SAFE-NIB’ project, which aims to enhance climate adaptation capacity and strengthen early warning systems for floods and landslides in the Hindu Kush Himalaya region. The proposed budget for this project is 300 million US dollars. The third project will be implemented in Lumbini Province by the United Nations Human Settlements Programme (UN-Habitat), with a budget of approximately 4,998,707 US dollars.