Flood-damaged Nepal wants help from the global climate Loss and Damage Fund – but it’s waiting, along with 118 other countries
Getting Loss and Damage Fund money would be worth a lot more than the $20 million Nepal is asking for. The foreign minister calls it a demand for justice and ‘legal and moral liability.’
Following the devastation of a flood triggered by a collapsing glacier in Nepal on August 26, 2026, the nation is seeking assistance from the global Climate Loss and Damage Fund. This request, led by Nepal's Foreign Minister Shisir Khanal, is not merely a plea for aid but a demand for justice and accountability, as the country's greenhouse gas emissions are negligible while it bears the brunt of a global crisis it did not create.
Khanal highlights the rapid melting of glaciers and catastrophic mountain tsunamis as direct consequences of global climate change. While Nepal's US$20 million request is modest compared to the billions in damage, it serves as a crucial test of the Loss and Damage Fund's credibility. As of June 2026, the fund, established during the U.N. climate conference in 2022, has received requests totaling $2.8 billion from 119 countries, but has disbursed only a fraction of that amount.
The fund, with a pledge of $820 million from wealthy nations, has only received $250 million to $300 million. The U.S. withdrew its support for the fund in 2025, and the board, responsible for disbursing funds, has yet to approve any of the submitted requests. Despite this, eight board members formally requested an emergency meeting to swiftly address the disaster in Nepal.
Nepal's finance minister, Swarnim Wagle, estimates the country will require US$4 billion to $5 billion to rebuild from the flood damage, nearly a tenth of its national economy. Over 1,400 people lost their lives, and thousands more remain missing. The flood also damaged hydropower dams, reducing Nepal's power production by about a tenth.
While the fund's symbolism is significant, vulnerable countries have been fighting for years to establish such an initiative during international climate talks. However, the management and speed of disbursements remain a cause for concern, with the board yet to fulfill its responsibility to support the affected nations.
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