Nepal demands $20m climate compensation for floods

Nepal has formally requested $20 million in climate compensation for catastrophic floods that killed or left missing more than 6,000 people. Foreign Minister Shisir Khanal told reporters the world's biggest polluting economies must 'wake up' and accept shared responsibility for the disaster.

The floods were triggered in late August when a melting glacier partially collapsed, causing a deadly landslide and flash flooding through Chinese-controlled Tibet and Nepal. Scientists believe the climate crisis played a role. Over 1,300 people are confirmed dead, and more than 5,500 remain missing after 12 days of rescue operations.

Nepal's finance and environment ministries sent a joint letter to the UN's loss and damage fund, established in 2022, to seek the $20 million. Khanal stated the amount is 'obviously not nearly enough' to cover the damage. Some estimates place total losses above $5 billion.

A call for climate justice

Khanal framed the demand as a matter of climate justice. Nepal contributes less than 0.1% of global greenhouse gas emissions. Its neighbors, India and China, are among the world's largest emitters. The Himalayas, spanning several countries, have been warming nearly 50% faster than the global average. A 2023 UN report said Nepal's mountains lost close to a third of their ice in just over 30 years.

'We have contributed so little to climate change,' Khanal said. He argued it is imperative for those who benefit from larger, polluting economies, and whose historical emissions are greater, to accept shared responsibility. 'This affects all of humanity,' he said.

Scale of the devastation

The minister described the disaster as far more extreme than typical monsoon flooding. He compared its magnitude to the devastating 2015 earthquake. 'This felt like a tsunami that was coming from the Himalayas,' Khanal said. 'We experienced waves as high as 60, 70 feet, which were mixed with debris, mud, stones, rocks, and came at the speed of almost 180km per hour.'

Towns, villages, and highways were completely wiped out. Some areas remain disconnected. Upwards of 20,000 homes will likely need rebuilding, along with the main highway. Villages built along vulnerable riverbanks may have to be relocated to higher ground.

Challenges of the loss and damage fund

The UN has admitted its loss and damage fund faces a 'significant financing gap.' The fund has received requests totaling $2.8 billion from about 119 countries but has only secured around $400 million in pledges. The United States, the world's biggest historical polluter, has contributed just $17 million.

Khanal acknowledged 'political challenges' in securing the compensation. He said the demand also acts as a 'wake-up call for the global community to establish a more strong mechanism' to help vulnerable economies like Nepal. He stressed the need for funds for preparedness and mitigation, not only immediate disaster response.

Regional coordination and warnings

Khanal rebuffed allegations that China failed to provide adequate warning or data about the impending floods. He said he is in discussions with China to enhance coordination for the Himalayan region. 'With the benefit of hindsight, we can now see that this glacier was fragile and had been receding in the past six months,' he stated.

However, he clarified that before the floods hit, neither Nepali nor Chinese scientists knew the collapse was imminent. 'I do not believe any of us had any idea of the threat until it happened,' Khanal said.

He initially singled out India and China to help but later rowed back, saying it was not about blaming individual countries but about working together. Khanal called the disaster one of the strongest warning signals of what is to come. He warned it should not be seen as a one-off event but in the context of the changing Himalayan climate, a recurring scenario more communities worldwide will face.