Nepal has requested USD 20 million from the UN Loss and Damage Fund after devastating floods, but the amount would cover only 0.7% of estimated losses.
Nepal requests USD 20 million after floods in Tibet and Nepal
The Nepalese government has requested USD 20 million from the UN Loss and Damage Fund to cover costs arising from the floods that hit Tibet and Nepal in late August. However, according to an analysis by Carbon Brief, the amount represents just 0.7% of the estimated USD 2.7 billion in damages.
The USD 20 million request would still make Nepal the fourth-largest applicant to the UN Loss and Damage Fund, which was created to help vulnerable countries respond to climate-related disasters.
On 26 August, Nepal was hit by a flash flood triggered by a rock and ice avalanche in the Himalayan region bordering Tibet, following the collapse of a glacier. The flood killed more than 1,400 people, while thousands remain missing.
A few days after the disaster, the Nepalese government approached the Board of the UN Loss and Damage Fund. It requested USD 20 million in financial compensation, currently the maximum amount that can be requested for a single event.
The UN fund was established in 2023 after decades of efforts by countries particularly vulnerable to the impacts of climate change. Its ability to respond to disasters on this scale is closely watched by vulnerable countries worldwide, including across Africa.
Nepal’s needs after the floods in Tibet and Nepal
Nepal’s national disaster management authority has prepared and released a broad preliminary assessment of the damage caused by the flooding.
However, the country’s request would be enough to cover only 0.7% of the USD 2.7 billion in total losses caused by the floods.
According to Carbon Brief’s analysis, if an additional USD 4.8 billion in reconstruction costs is included, Nepal’s USD 20 million request would cover just 0.3% of estimated needs. The Nepalese government estimates that reconstruction could ultimately cost between USD 4 billion and USD 5 billion.
One month after the disaster, no decision has yet been made on Nepal’s request, and the country has received no guarantee that funding will be available for its rapid response.
Funding requests far exceed pledges
Between December 2025 and July 2026, low-income countries submitted 176 applications to the UN fund, requesting more than USD 2.8 billion in assistance.
So far, however, developed economies have pledged only USD 822 million to the fund. Some countries that are not classified as developed by the UN, including the United Arab Emirates and South Korea, have also contributed funds.
As a result, funding requests far exceed the resources pledged so far, amounting to more than three times the total commitments.
Moreover, only around half of the money pledged has actually been paid into the fund, while contributions from France, Italy and the United Arab Emirates are reportedly still outstanding.
According to Carbon Brief’s analysis, of the 176 requests submitted by 118 countries, more than 60% come from low-income countries, such as Nepal, and small island states.
The gap between climate-related losses and available funding is also highly relevant to vulnerable economies in Africa, where access to loss and damage finance remains part of the wider international climate finance debate.
Focus turns to COP31 in Türkiye
Nepalese Prime Minister Balendra Shah used his address to the UN General Assembly on 24 September to focus on climate justice and the vulnerability of mountain countries.
The next meeting of the Loss and Damage Fund Board will take place on 15 December, two weeks after the conclusion of COP31 in Türkiye.
The November summit in Antalya is expected to address the crucial issue of financing for climate-related loss and damage amid growing demands from countries such as Nepal.
Guterres says polluters treated the atmosphere like an “open sewer”
Outgoing UN Secretary-General António Guterres, speaking at the United Nations General Assembly in New York, issued another warning about climate change.
Guterres took office at the UN in 2017, shortly after the 2015 Paris Agreement, under which most countries committed to efforts to limit global warming to 1.5 degrees Celsius above pre-industrial levels.
“Things are getting dramatically worse,” Guterres said. “In the coming years, we will exceed the 1.5-degree threshold.”
Addressing the General Assembly once again, Guterres accused major fossil fuel companies of having treated “the atmosphere like an open sewer.”
The UN Secretary-General also said: “Three years ago, from the mountains of Nepal, I sounded the alarm about the accelerating melting of glaciers, warning that the roofs of the world were collapsing. Some dismissed my words as an exaggeration, claiming I was overstating the dangers. However, as these tragic events have shown, the impacts of climate change are arriving even sooner, hitting harder and reaching farther than many had predicted.”
“Those who polluted the most and profited the most,” he added, “must do much more to repair the damage they have caused. Polluters must pay. And to the leaders, cities, civil society and citizens working to hold them accountable, I say: you are on the right side of history. Keep going.”
