UN Backed Loss And Damage Fund Responds To Nepal’s $20 Million Emergency Request After Devastating Rasuwa Floods

The Fund for Responding to Loss and Damage has responded to Nepal’s request for emergency financial assistance following the devastating floods in Rasuwa, moving the country’s request for international climate disaster support forward.

Nepal formally wrote to the board of the UN climate change related fund on September 1, requesting immediate financial assistance after the floods struck Rasuwa on August 26. The government argued that climate change had contributed to the disaster and that Nepal required urgent international support to deal with the resulting loss and damage.

The fund responded in a letter dated September 10. According to the letter, consultations and coordination are underway to determine how Nepal’s request for immediate assistance can be addressed as quickly as possible.

The letter was signed by the fund’s co chairs, Camila Minerva Rodríguez Tavarez and Georg Børsting, and addressed to Finance Minister Dr Swarnim Wagle and Minister for Agriculture, Forests and Environment Geeta Chaudhary.

The co chairs recommended that the fund’s board consider different options available under its existing mandate, structure, framework, policies and procedures to provide Nepal with a quick and meaningful response.

The fund also expressed condolences over the loss of life and widespread damage caused by the Bhote Koshi floods and expressed solidarity with the people and government of Nepal.

It thanked the Nepal government for quickly providing preliminary assessments, official data, satellite information and estimates of the damage despite the scale of the disaster.

Nepal Initially Seeks $20 Million

Nepal has initially requested $20 million, equivalent to more than NPR 3 billion, in emergency assistance from the Loss and Damage Fund.

Dr Maheshwar Dhakal, head of the Climate Change Management Division under the Ministry of Agriculture, Forests and Environment and an alternate member of the fund’s board, said informal board discussions had focused on Nepal seeking more than NPR 3 billion in compensation.

A government minister also said Nepal had requested $20 million for the immediate response and could seek additional financial support after a more complete assessment of the flood damage.

The request comes as Nepal faces massive human and economic losses from the disaster. According to figures cited by the government in the report, 1,377 people have died, 5,130 remain missing and more than 7,500 have been injured.

A preliminary assessment by the National Disaster Risk Reduction and Management Authority has estimated physical damage from the floods at around NPR 700 billion.

The size of the damage means the initial $20 million request would cover only a small part of Nepal’s overall losses. However, receiving support from the Loss and Damage Fund would be significant because the fund was created specifically to help vulnerable developing countries deal with losses caused by climate change.

Government Calls Response A Historic Development

Dr Dhakal described the fund’s response to Nepal as a historic development.

He said the response could help establish a foundation for how the Loss and Damage Fund deals with climate related losses and damage faced by developing countries around the world.

Nepal is among the countries that contribute relatively little to global carbon emissions while remaining highly exposed to climate related disasters. Government officials and climate experts have argued that the country should receive international financial support for the damage it faces as well as recognition for its role in protecting mountains, forests, vegetation and biodiversity.

The government is therefore presenting the Rasuwa disaster not only as a national emergency but also as an issue of international climate responsibility.

Nepal Plans To Take Flood Issue To UN General Assembly

Nepal is also preparing to raise the Rasuwa flood and climate justice issue at the United Nations General Assembly scheduled for September 24.

According to government ministers cited in the report, Prime Minister Balendra Shah is preparing to attend the General Assembly and raise the issue following the disaster. Foreign Minister Shishir Khanal is scheduled to lead Nepal’s delegation.

Government officials believe the issue should be raised at the highest political level because Nepal faces serious consequences from climate change despite its relatively small contribution to global emissions.

The move could give Nepal an opportunity to seek wider international support for rescue, rehabilitation, reconstruction and climate related loss and damage.

Loss And Damage Fund Board To Meet In Manila And Kathmandu

The next major decisions will depend on the fund’s board and the options available under its existing policies and procedures.

The 10th meeting of the Loss and Damage Fund board is scheduled to take place in Manila, Philippines, in December 2026.

Nepal will then host the 11th board meeting in Kathmandu from March 17 to 19, 2027, giving the country another important platform for discussions on climate related loss and damage.

For now, the September 10 response confirms that Nepal’s emergency request is under consideration and that the fund is working on possible ways to respond.

Nepal is seeking $20 million as immediate assistance, but the government has indicated that it could request further support once the full scale of the disaster and the country’s longer term recovery needs are assessed.