Kathmandu, Oct. 27 -- The UN's decision to provisionally set aside $21.6 million for Nepal marks an unprecedented step for its Fund for Responding to Loss and Damage (FRLD), which has yet to disburse money to any country since its establishment in 2022. But the allocation is only the first step towards addressing Nepal's estimated $4.7 billion recovery and reconstruction needs.

The decision follows Nepal's urgent appeal for assistance after the Rasuwa disaster. While the Fund's Board has hailed the move as a "landmark decision" that demonstrates its ability to respond as an "agile and efficient responder", Nepal must submit a funding proposal, undergo technical assessment and secure a final approval from the Fund's Board. It has not set ...