The first country-specific allocation by the Fund for responding to Loss and Damage marks an operational milestone, but also exposes the inadequacy of global climate finance. Discuss.

The FRLD was created to address climate-related economic and non-economic losses, especially in vulnerable developing countries. Its Nepal allocation is symbolically important but financially inadequate.

• Established at COP27 in 2022, with operational arrangements agreed at COP28. • Nepal is the first country to receive a country-specific allocation: about $21.6 million, including implementation oversight costs. • The decision recognises that least developed countries contribute little to global emissions while suffering escalating impacts.

• Nepal estimated initial recovery and reconstruction needs at roughly $4.71–5 billion. • The allocation is a fraction of the requirement; broader FRLD pledges exceed $820 million, with only part promised for start-up. • Disbursement depends on donors honouring pledges and Nepal clearing project procedures, creating delay risks.

• Loss and damage includes destroyed infrastructure, livelihoods, cultural assets and non-economic harms, beyond adaptation. • Finance must be additional, predictable, accessible and grant-oriented for vulnerable countries. • Oversight fees and project conditions should ensure accountability without imposing bureaucratic delays during emergencies.

• Scale up assessed and voluntary contributions by developed countries. • Simplify direct access for least developed countries with transparent safeguards. • Combine FRLD support with early-warning systems, resilient infrastructure, insurance and domestic disaster institutions. • Use vulnerability and loss data to guide allocation while protecting community participation.

FRLD; COP27; COP28; loss and damage; climate justice; LDCs; adaptation; additionality; direct access