Nepal Becomes First Beneficiary of Global Funding for Loss & Damage, Pg22

Key Highlights:

• Nepal became the first beneficiary of the newly created Fund for Responding to Loss and Damage (FRLD).
• The FRLD provisionally earmarked US $20 million for Nepal to aid recovery from devastating flash floods in August.
• The floods, scientifically linked to climate change, occurred in Nepal's Rasua district, causing over 1,300 deaths and an estimated $2.69 billion in economic loss.
• The FRLD was established at COP27 in 2022 and operationalized at COP28 in 2023.
• This allocation represents the maximum amount the FRLD can approve for a single event currently.

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Detailed Insights:

• The provisional allocation of $20 million is less than one percent of Nepal's estimated $4.71 billion recovery and reconstruction needs.
• Nepal is required to submit a formal funding application, which will be considered at the FRLD board's next meeting in December.
• The FRLD was created in response to long-standing demands from developing countries, particularly small and least developed nations most vulnerable to climate change impacts.
• The August incident involved a rock and ice avalanche, leading to massive flooding, characteristic of a Glacial Lake Outburst Flood (GLOF) event.
• This initial funding is considered a significant step in operationalizing the international loss and damage framework, allowing vulnerable countries to access financial assistance.

Scientific/Technical Concepts Involved:

• Fund for Responding to Loss and Damage (FRLD): An international climate fund designed to provide financial assistance to countries severely impacted by climate-induced disasters.
• Glacial Lake Outburst Flood (GLOF): A sudden and rapid release of a significant volume of water from a glacial lake, often triggered by events like avalanches or glacial melt.
• COP27/COP28: Annual United Nations Climate Change Conferences where global climate policies, agreements, and financial mechanisms are negotiated and established.