Nepal demands climate compensation from major emitters
Nepal has launched a diplomatic push for international financial assistance after catastrophic flash floods swept through the Bhotekoshi river basin on August 26, devastating parts of the Rasuwa, Nuwakot and Dhading districts. The Himalayan nation is seeking compensation from what it identifies as the world's largest greenhouse gas emitters—China, the United States and India—for climate-related losses.
Foreign Minister Shisir Khanal said post-disaster support should be treated as a matter of moral liability rather than charity. "We are shifting our diplomatic framework from aid to justice and compensation," Khanal said in an interview with Kantipur TV, excerpts of which were published by The Kathmandu Post and PTI. He argued that countries that have contributed significantly to global emissions have a historical responsibility towards vulnerable nations such as Nepal.
"This is not a matter of charity; it is a matter of legal and moral liability," Khanal added. He specifically named China as the world's top emitter, the United States as number two and India as number three, and said Nepal would seek compensation from major emitters for climate-related losses suffered by vulnerable countries.
Nepal contributes a virtually negligible share of global greenhouse gas emissions but faces severe consequences linked to global warming, Khanal said, pointing to rapid glacier melt and extreme disasters in the Himalayan region. He described the recent disaster as a "Himalayan Tsunami."
Formal request to loss and damage fund
Kathmandu has formally approached the board of the UN-backed Fund for Responding to Loss and Damage, seeking urgent financial assistance. The mechanism was established at COP27 in 2022 and operationalised at COP28. Nepal's letter was jointly signed by Finance Minister Swarnim Wagle and Forests and Agriculture Minister Geeta Chaudhary. The government has sought an urgent response without waiting for the fund board's next scheduled meeting.
According to The Kathmandu Post, the request was sent to the fund rather than as separate bilateral compensation claims. Nepal is seeking money for resettlement and reconstruction, as well as specialist assistance such as tunnel-rescue teams, forensic experts and Bailey bridges.
Finance Minister Wagle told Reuters that Nepal might need $4-5 billion—nearly 10% of its economy—to rebuild what was destroyed by the floods. The disaster has damaged homes, roads, bridges and hydropower projects, leaving thousands of people displaced.
Fatalities and missing persons
The floods, reportedly triggered by a massive rock-and-ice avalanche near the Nepal-China border, have caused widespread death and destruction. At least 1,127 people have died and around 3,900 remain missing, according to figures reported by Nepal Police as of September 1. More than 1,100 people were confirmed dead and thousands remained missing, with villages swept away by the huge flow of water, rocks and debris.
Nepal had initially rejected foreign aid in search and rescue efforts, but later sought specialised teams, equipment and experts from India, China and other countries, according to reports.
Possible UN appearance by Prime Minister
To amplify the demand for compensation, Nepal is considering sending Prime Minister Balendra 'Balen' Shah to New York to attend the 81st session of the United Nations General Assembly. According to The Kathmandu Post, the proposal is being discussed so Shah can personally highlight the Rasuwa floods and demand climate justice and compensation.
The move would mark a significant step in Nepal's diplomatic strategy, shifting from traditional aid appeals to a formal demand for accountability from the world's largest emitters. Khanal cited rapidly changing conditions in the Himalayan region as a key factor behind the disaster.
Emissions context
According to the European Commission's latest EDGAR estimates for 2024, China, the US and India were the three largest greenhouse gas emitters in absolute terms. However, India's per-capita emissions are significantly lower, at around three tonnes of CO2-equivalent per person, compared with China's roughly 11 tonnes and the US's over 17 tonnes.
Nepal's demand for compensation is rooted in the argument that while it bears a negligible share of global emissions, it is disproportionately exposed to the consequences of climate change. The government's formal approach to the loss and damage fund and its potential appeal to the UN signal a determination to press the issue on the international stage.