Nepal is set to receive US$20 million in climate finance under a mechanism established to support countries vulnerable to climate change.

The funding has been approved under the Barbados Implementation Modalities, established under the architecture of the Fund for responding to Loss and Damage (FRLD), based on Nepal’s proposals submitted earlier this year.

Nepal had submitted three separate proposals in response to a call for applications from climate-vulnerable countries, said Maheshwar Dhakal, an alternate member of the FRLD Board and the focal point for climate change at the Ministry of Forests and Environment.

“Under the Barbados Implementation Modalities, we have received confirmation of US$20 million [Rs 3 billion] in support,” Dhakal said.

After sanctioning Nepal’s claim, the fund has forwarded a proposal to the Alternative Energy Promotion Centre to address the reviewers’ comments as soon as possible—the process necessary before releasing the funds, according to Dhakal.

The Barbados Implementation Modalities are designed to support an initial set of interventions while testing approaches for the fund’s long-term operations.

The mechanism currently has US$342 million in deposits.

Even though the application was made before the August 26 Bhotekoshi flood, the funding could now help Nepal respond to the devastation caused by the disaster, officials said.

Nepal separately sent an urgent request to the FRLD Board on August 31, seeking financial assistance to respond to the flood.

“Nepal is separately awaiting another decision by the FRLD Board on that request,” said Dhakal.

The request has received strong support and solidarity from countries and groups representing Asia, Africa, Latin America, least developed countries and small island developing states, Dhakal said.

“They have asked the developed countries on the Board from Asia and Europe to call a meeting promptly and take a decision on Nepal’s request,” he added.

The FRLD board consists of 26 members representing parties to the UN Framework Convention on Climate Change and the Paris Agreement, with 12 are from developed countries and 14 representing developing-country constituencies. Each Board member has an alternate member who can serve in the member’s absence.

On September 8, FRLD board and alternate Board members representing small island developing states wrote to Adao Soares Barbosa, chair of the Least Developed Countries Group and a member of the board, expressing support for Nepal's call for urgent climate finance in the aftermath of the Bhotekoshi floods.

Likewise, the Group of Latin America and Caribbean Countries, which represents members of the FRLD board, also wrote to the fund, urging it to respond to Nepal’s urgent request following the Bhotekoshi floods.