Nepal becomes first country to receive millions from climate damage fund after mountain disaster
Nepal is the first country to receive money from a fund set up by the United Nations for poor countries suffering damage from climate disasters. The fund has pledged 20 million dollars (almost 18 million euros) in support to the South Asian country, which was hit in August by a landslide in the mountains, followed by a devastating flood wave.
More than 1400 people died in the disaster and more than 5000 are missing. The damage in the affected area runs into the billions. Nepal itself estimates it needs nearly 5 billion dollars for reconstruction. The pledged amount from the fund is therefore less than 1 percent of what the country thinks it needs.
The pledged millions are nevertheless seen as a big step. It is the first request that has led to a pledge from the fund, which was established between 2022 and 2024 with great difficulty under pressure from the poorest countries that are often hard hit by climate change. The maximum amount to be paid out was also immediately pledged.
High costs
Dissatisfaction with the climate damage fund has been great for some time. The poorer countries have pointed out for years that the fund falls short. Rich countries have only pledged a relatively small amount, which ultimately totals about 822 million dollars. The World Bank, which manages the fund, reports that about 516.5 million dollars of this has now been received.
That sounds like a substantial amount, but experts warn that it is far too little if the fund is to be consistently tapped after disasters in poorer countries. The damage, as can also be seen in Nepal, is quickly very large after a severe natural disaster. Also, the 20 million that can be paid out at most is rarely sufficient to achieve more than a small contribution to reconstruction.
2.8 billion dollars
"The tragedy in Nepal points out to us in a devastating way that events caused by climate change are becoming more complex and severe," says Georg Børsting, co-chair of the fund's board. He refers to findings by scientists who also see the hand of climate change in the natural disaster in Nepal. "Unfortunately, these challenges will only become greater in the future."
Since its establishment, developing countries have submitted about 176 requests to the fund, together amounting to about 2.8 billion dollars. So far, not a cent has been transferred to affected countries. With the pledge, this is not yet the case for Nepal either. However, the country can now submit an official application for the pledged amount.