Nepal floods: UN climate fund earmarks first $20m

The United Nations climate loss and damage fund has agreed to earmark $20 million for flood-hit Nepal, the first time it has set aside money for any country.

The fund's board made the decision at its first extraordinary meeting. Nepal was hit in August by floods that killed more than 1,400 people and left more than 5,000 missing.

The decision does not mean Nepal will receive the money immediately. The country must first submit a proposal for the board to approve, and no firm timeline has been set.

The $20 million is the maximum amount a country can request in a single application. It is less than 0.5% of Nepal's $4.78 billion reconstruction estimate.

The fund was created after UN climate talks in 2022 and 2023 following demands from developing countries for help with climate-related damage. It has received $822 million in pledges, but no money has yet been disbursed.

Some developed countries said the Nepal decision should be treated as exceptional, while developing countries argued it should help shape faster future funding. Advocates said the move was an important first step but showed how much further the fund had to go.