KATHMANDU, October 17: The Fund for Responding to Loss and Damage (FRLD) will hold an extraordinary meeting next week to discuss the devastating floods that struck the Bhotekoshi River last month and consider financial support for Nepal.
The proposed agenda for the meeting includes a provisional allocation of US$21.6 million for Nepal, including US$1.6 million to cover oversight fees. The proposal will be discussed at the Fund’s virtual board meeting scheduled for October 22.
Immediately after the Bhotekoshi floods, Nepal’s finance minister and the minister for agriculture, forests and environment wrote to the Fund requesting financial assistance. The proposed amount will be made available only after the Board considers and approves Nepal’s funding request.
Dr Maheshwor Dhakal, spokesperson for the Ministry of Agriculture, Forests and Environment, said it was encouraging that the international community had taken note of Nepal’s request.
Govt must seek compensation under ‘loss and damage’ mechanism:...
“The request made by Nepal’s ministers for agriculture, forests and environment, and finance, immediately after the floods has been heard. This is a welcome step. The UN climate conference, COP31, begins on November 9. Against this backdrop, we hope the international community will make the right decision on providing financial assistance,” Dhakal told Republica.
The 31st Conference of the Parties to the United Nations Framework Convention on Climate Change (COP31) will be held in Antalya, Türkiye, from November 9 to 20. Nepal has consistently raised issues of climate justice, climate-induced loss and damage, and the need for adequate financial support for countries bearing the brunt of climate change at international climate forums.
The government has made a preliminary estimate that Nepal will need at least US$4.71 billion for recovery and reconstruction following the Bhotekoshi floods. The initial economic losses and damage caused by the disaster have been estimated at a minimum of US$2.69 billion.
The proposed allocation is part of the Fund’s response to Nepal’s urgent request following the catastrophic floods of August 26, 2026. The disaster was triggered by an ice-and-rock avalanche, resulting in debris flows and major downstream flooding along the Bhotekoshi–Trishuli–Narayani river system.
According to the agenda document prepared for the extraordinary meeting, the Board is being asked to provisionally set aside US$21.6 million from its available commitment authority, subject to consideration and approval of Nepal’s funding request. The proposal also seeks to pilot a mechanism that would allow Nepal to submit a funding request outside the regular submission period under the Fund’s Barbados Implementation Modalities.
The Board is also expected to invite Nepal’s FRLD national focal point to submit a funding request for consideration and approval. In addition, the Secretariat has been asked to assess lessons from the Fund’s response to the disaster to inform its long-term operational model.
The Fund for Responding to Loss and Damage was established to assist developing countries that are particularly vulnerable to the adverse effects of climate change in addressing both economic and non-economic losses. Its mandate covers damage associated with extreme weather events, including floods and glacial lake outburst floods, as well as slow-onset climate impacts.
As COP31 approaches, the Board’s decision on Nepal’s request is being viewed as a test of how quickly and effectively international climate finance mechanisms can respond to vulnerable countries facing climate-induced loss and damage.
