A month after it raised a request, Nepal has been promised a sum of $20 million (around Rs 190 crore) to help it recover from the devastating flash floods in August this year. Though the amount is extremely small compared to an estimated need of about $4.75 billion (around Rs 44,600 crore) in recovery and reconstruction costs, it marks the beginning of the implementation of a new international regime on loss and damage. This system seeks to provide financial assistance to developing countries affected by climate events.

The allocation is a first from the Fund for Responding to Loss and Damage (FRLD), a new international financing instrument created in 2022 to address a long-pending demand from developing nations, particularly those small and vulnerable countries that face the maximum risk from climate events.…