Nepal’s request for flood payout tests new climate-aid system

As the search continues for the missing in Nepal following devastating floods that claimed 1,250 lives, the nation faces a daunting task of financing recovery efforts. Estimated at $5 billion, the recovery cost is a massive burden for a poor country in Asia. Nepal is seeking financial assistance from a new United Nations fund designed to aid developing nations grappling with the worst effects of climate change.

On September 1, Nepal sent a letter to the fund's co-chairs requesting immediate support, emphasizing that promises made on paper must translate into tangible actions on the ground. The letter did not specify the exact damages or the amount of money sought. The UN Fund for Loss and Damage was established in 2022 during climate talks in Sharm El-Sheikh, Egypt, aiming to address a key injustice of climate change.

Developed countries, responsible for the majority of emissions, are the most impacted by climate change while poorer nations, who have contributed less, are hit hardest. The exact role climate change played in the Aug. 26 disaster is still being determined, but the Himalayas are highly vulnerable due to the effects of permafrost and glacier melt.

Climate-related disasters, such as glacial-lake floods, have become more frequent in recent years. While the fund has received pledges of over $822 million from 27 nations, only $485 million has been paid so far. The fund, managed by the World Bank, has approved 176 aid requests totaling $2.8 billion but has not allocated any funds yet.

Countries can only submit aid requests to the fund if they are governments or official agencies of developing countries. The next board meeting is in December, and a first round of grants is still several months away. Rapid emergency assistance, a key role of the fund, is crucial in Nepal's situation. Experts believe the fund needs to develop a swift response mechanism to address climate-related extreme weather events.