Delays in releasing grants can aggravate the hardships of affected communities, slow down the restoration of essential services and increase rebuilding costs.3 min readOct 27, 2026 06:00 AM IST First published on: Oct 27, 2026 at 06:00 AM ISTNearly two months after Nepal suffered devastating floods, the UN climate convention’s Fund for Loss and Damage (FLD) has allocated $21.6 million to the Himalayan nation. This is the first time that the Fund has earmarked a grant for a disaster-affected nation. Kathmandu had invoked the principle of climate justice in its application: Nepal accounts for barely 0.1 per cent of global emissions, yet it is on the frontline of climate change in the Himalaya. The ice-and-rock avalanche that triggered flash floods in the Bhotekoshi and Trishuli river systems claimed more than 1,400 lives, several villages were swept away, and the country lost at least 10 per cent of its hydropower facilities. Conservative estimates put Nepal’s recovery and reconstruction requirements at $5 billion. The grant, far short of what Nepal needs, marks an important first step in turning the commitment of climate reparation into action.Established at the UNFCCC’s COP27 in 2022 and operationalised a year later, the FLD is a product of a nearly three-decade-long campaign by nations most vulnerable to global warming. It rests on the principle of climate compensation, not charity. This distinction is not academic. The Global North is often willing to provide humanitarian assistance, but a fund explicitly meant to address “loss and damage” remains fraught because it raises questions related to responsibility for climate change. Nepal’s application ran into predictable bureaucratic hurdles. The FLD’s application window had closed in June, and when Nepal sought emergency funding, claims from 119 countries were awaiting approval. Developed countries initially argued that granting Kathmandu’s request would mean allowing it to jump the queue. They eventually relented, but only after insisting that the allocation be treated as an exception and not set a precedent for a permanent rapid-response mechanism.AdvertisementNepal’s experience with the FLD should serve as a case study for reforming the Fund. Delays in releasing grants can aggravate the hardships of affected communities, slow down the restoration of essential services and increase rebuilding costs. A swift response is particularly important for poorer countries, whose budgets have less room to absorb sudden losses. Fund shortages have also limited the FLD’s ability to fulfil its mandate. It has received pledges worth $822 million — about a third of the claims pending before it. Compensation for countries hardest hit by global warming will be on the agenda at COP31, which begins on November 9 in Antalya, Turkey. As extreme weather events become more frequent and intense, delays in addressing the FLD’s shortcomings will undermine the central principle of climate negotiations under the UN’s aegis: Climate justice.© The Indian Express Pvt Ltd# Nepal ShareWhatsapptwitterFacebook