UN-backed Loss and Damage fund sets aside $21.6 million for Nepal flood damage

A Fund for responding to Loss and Damage has provisionally set aside $21.6 million from its available commitment authority for Nepal, in a show of support to the country and in response to the Bhote Koshi flash floods.

The Board agreed to pilot an approach which allows Nepal to submit a funding request under the Barbados Implementation Modalities outside the standard submission period.

Triggered by a climate-induced ice-and-rock avalanche on 26 August 2026, a massive debris flow and severe downstream flooding devastated Nepalʼs Bhote Koshi-Trishuli-Narayani river system, claiming many lives and leaving others still missing.

Following Nepalʼs formal letter on 31 August 2026 requesting support from the Fund, the FRLD Board commenced to assess available options.

Ahead of the UN Climate Conference in Antalya (COP31), this milestone provides stakeholders with the concrete evidence of its progress, demonstrating a commitment to responding to crises it was created to address, the Fund has said.

The Fund is an operating entity under the financial mechanism of the United Nations Framework Convention on Climate Change (UNFCC) that “addresses the growing needs of vulnerable communities in developing countries facing the irreversible impacts of climate change”. It mobilises financial resources through government contributions, private sector partnerships and financing mechanisms to address climate-induced loss and damage.