Positioning Nepal to access the fund for responding to loss and damage: recommendations to untap essential finance

This policy brief examines Nepal's opportunity to leverage the Barbados Implementation Modalities (BIM) start-up phase to access the Fund for responding to Loss and Damage (FRLD), including through the low-hanging fruit of utilizing already-accredited entities. To capitalize on this opportunity, Nepal needs to strengthen its policy and institutional frameworks to ensure robust governance that channels L&D finance efficiently to those most in need, develop comprehensive and accessible L&D databases to justify funding requests and demonstrate impact, and prepare a well-developed pipeline of projects addressing its immediate L&D priorities within realistic budget constraints.

However, the brief raises concerns about the FRLD's long-term effectiveness and sustainability. While developed countries' pledge of over $700 million marks a diplomatic milestone for developing nations, this figure falls far short of the estimated $300 billion needed annually by 2035, and the absence of binding commitments further clouds the Fund's future viability. Ultimately, the author argues that the FRLD's credibility will hinge on its ability to deliver L&D finance at scale to the most vulnerable, with measurable on-the-ground results — and suggests that Nepal, through readiness and targeted project proposals, can lead by example and set a precedent for other countries seeking to unlock sustainable L&D finance.