The UN’s Fund for Responding to Loss and Damage, established at COP27 and operationalised at COP28, provisionally approved $21.6 million for Nepal following the 2026 Bhote Koshi glacial flood to support climate recovery and promote climate justice for vulnerable developing countries.
NEWS: The Fund for Responding to Loss and Damage provisionally approved $21.6 million for Nepal following the August 2026 Bhote Koshi glacial flood, marking its first disaster-specific funding approval.
ABOUT THE FUND
- Established: COP27 (2022), Sharm el-Sheikh, Egypt.
- Operationalised: COP28 (2023), Dubai, UAE.
- Framework: UNFCCC + Paris Agreement.
- Aim: Financial support to vulnerable developing countries for unavoidable climate-related losses and damages.
BACKGROUND
- 1991: Proposed by Alliance of Small Island States (AOSIS).
- COP19 (2013): Established Warsaw International Mechanism (WIM) for Loss and Damage.
- COP25 (2019): Established Santiago Network for technical assistance.
KEY FEATURES
- Barbados Implementation Modalities (BIM): Framework for submitting funding proposals.
- Funding: Prioritises grants for recovery + reconstruction, reducing additional debt burdens.
- World Bank: Interim trustee; an independent governing board oversees the Fund.
- Contributions: Voluntary contributions from developed + emerging economies.
- Santiago Network: Supports technical assistance + disaster impact assessments.
SIGNIFICANCE
- Promotes climate justice + equity by supporting vulnerable countries disproportionately affected by climate change.
- Addresses economic + non-economic losses from extreme weather and slow-onset events.
- Supports recovery from glacial floods, sea-level rise + other climate disasters.
- Complements mitigation + adaptation efforts.