Nepal, May 18 -- Nepal is preparing a budget estimated at $14 billion for the upcoming fiscal year, amid ongoing debates over how much to allocate for infrastructure, private sector growth and human capital. What seems not yet to have been debated seriously is the annual cost of climate inaction.

As per the 54-year analysis of climate-induced economic losses in Nepal, published by the Loss and Damage Collaboration in 2025, the country's average annual economic loss from climate-induced disasters stands at $18 million, with extreme years touching 2.08 percent of GDP. Without action, that figure could reach nearly 10 percent of GDP by 2100. A budget that does not price in these risks will keep Nepal in a cycle of rebuilding, rather than gr...