As loss and damage fund stalls, Nepal crowdfunds flood relief

People around the world have donated almost $90 million to a government-led campaign to help Nepal recover from its recent devastating Himalayan flood, according to a Nepali climate negotiator, even as the UN chief slammed the tiny amount of money in a new fund to deal with such disasters.

Individuals and companies from Nepal and abroad have chipped in from $5 to “many millions” of dollars to the Prime Minister’s Disaster Relief Fund, Manjeet Dhakal, an advisor to the poorest countries at UN climate talks, told an event on Monday focused on early warning systems.

People around the world have donated almost $90 million to a government-led campaign to help Nepal recover from its recent devastating Himalayan flood, according to a Nepali climate negotiator, even as the UN chief slammed the tiny amount of money in a new fund to deal with such disasters.

Individuals and companies from Nepal and abroad have chipped in from $5 to “many millions” of dollars to the Prime Minister’s Disaster Relief Fund, Manjeet Dhakal, an advisor to the poorest countries at UN climate talks, told an event on Monday focused on early warning systems.

The prompt and substantial response from the public contrasts with the slower, more limited support that is potentially on offer from the UN’s new Fund for Responding to Loss and Damage (FRLD), set up by governments to compensate developing countries for climate disasters.

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Over three weeks have passed since Nepal’s finance and environment ministers asked the FRLD board to take an urgent decision to allocate funding to help Nepal protect people and restore essential services in the wake of the disaster, which caused around 1,450 deaths and left more than 5,000 people missing.

“Time is of the essence,” the ministers wrote in an appeal to the FRLD on August 31, which was swiftly followed by a letter from a group of developing-country board members urging the FRLD board’s co-chairs to organise an extraordinary meeting to come up with a response.

Loss and damage fund hesitates

Yet, despite informal online meetings, the co-chairs have yet to convene a meeting with the power to allocate funds. The board’s next scheduled meeting begins on December 15.

Dhakal said on Monday that the request has “received some positive response, but still there is some discussion ongoing about how to respond to that”.

“If they can’t respond in a timely manner, then is [the fund] fit for purpose in terms of disasters that the world would be facing in the coming years? The scale and intensity of these disasters is increasing,” he said.

With just $820 million pledged to it by rich countries and not all of that yet delivered, the FRLD has earmarked just $350 million to spend in its initial phase and without further contributions could run out of money next year.

Because of these limited funds, and a huge number of requests for funding totalling nearly $3 billion, the FRLD has said it will only give out a maximum of $20 million to each project for now. It has yet to approve funding for any projects.

Dhakal recently told The Nation magazine that this amount was just a “symbolic gesture”. Nepal’s government has estimated the costs of recovery and reconstruction at $4.8 billion, with homes, roads, bridges, hospitals and hydropower stations in the affected area needing to be repaired and rebuilt.

“Ridiculously small” funding

In a speech to the UN General Assembly on Tuesday, the body’s outgoing Secretary-General António Guterres criticised the “ridiculously small” level of funds made available by wealthy governments to the FRLD. Developed countries should “make the loss and damage fund work at scale”, he said.

The Portuguese diplomat told world leaders that when he travelled to Nepal three years ago, he had “sounded the alarm on accelerating glacier melt, warning that the rooftops of the world are caving in”.

“Some dismissed it all as overstating dangers, but as tragic events have shown, impacts are arriving sooner, hitting harder, and spreading further than many anticipated,” he said.

A recent study by scientists with the World Weather Attribution group found that climate change contributed to the rock-ice avalanche which sparked a huge flash flood along a river valley on the Nepal-Tibet border.

Speaking at a separate event in New York on Monday, leading climate scientist Johan Rockström highlighted those findings on the role of global warming in the Himalayan disaster.

“This will be potentially the first poster-child case of a loss and damage invoice, because here we have a proven case of a catastrophe which would not have occurred if it hadn’t been for human-caused climate change,” he said.