Foreign Minister Shisir Khanal: Nepal Needs Climate Grants, Not More Debt

Khanal calls for faster support from the Loss and Damage Fund as climate disasters threaten development


Foreign Minister Shisir Khanal: Nepal Needs Climate Grants, Not More Debt

Kathmandu, October 4 — Foreign Minister Shisir Khanal has called for accessible, grant-based climate finance for Nepal and faster support through the international Loss and Damage Fund, saying climate-related disasters are becoming a major challenge to the country’s development.

Addressing Kathmandu Climate Week 2026, Khanal said Nepal contributes less than 0.1 percent of global greenhouse gas emissions, yet is disproportionately affected by climate change. He said floods, landslides and mountain disasters are forcing the country to divert resources originally allocated for long-term development—including health, education and infrastructure—towards disaster response and reconstruction.

Khanal urged the international community to make climate finance more accessible and provide direct public grants rather than loans. He also stressed the need for climate-resilient infrastructure, effective early-warning systems and real-time sharing of weather and hydrological data between neighbouring countries.

Ahead of COP31, Khanal also announced that Nepal’s Ministry of Foreign Affairs has established a dedicated Climate Diplomacy Section to strengthen the country’s climate diplomacy and connect Nepal’s climate realities with international negotiations.

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