The board overseeing the United Nations’ Fund for responding to Loss and Damage voted Thursday to earmark $20 million for Nepal, its first country-level allocation amid scrutiny over the fund’s ability to deliver aid.
The vote came during the board’s first extraordinary session since the fund launched in 2022, AFP reported. Developing countries had pressed for the fund’s creation, which won standing ovations at COP27 and COP28 in 2022 and 2023, the agency reported.
An avalanche of ice and rock linked to climate change triggered Nepal’s August floods. AFP reported that more than 1,400 people died and over 5,000 were missing after the disaster. The government estimates reconstruction costs at $4.78 billion, putting the earmark below half of 1% of that figure.
The board’s vote does not release the money. Nepal must submit a proposal, which the board must approve before any transfer. AFP reported that no timetable was set, and each application to the fund is capped at $20 million.
Government pledges to the fund totaled $822 million to date, but it had made no disbursements since becoming operational, AFP reported. The next step is Nepal’s proposal, followed by the board’s review.
