Sustainable Finance

Green Climate Fund approves USD 36.1 million for Nepal glacial flood resilience

ESG Broadcast Desk· 8 Jul 2025· 1 min read

The Green Climate Fund approved a USD 36.1 million grant for Nepal to reduce glacial lake outburst flood risks across the Himalayas over seven years. The blended-finance disaster-resilience model is relevant to Indian Himalayan states facing comparable GLOF and climate adaptation challenges.

The Green Climate Fund approved a USD 36.1 million grant to help Nepal reduce glacial lake outburst floods, intensifying due to accelerated glacial melting. The seven-year project, executed by Nepal's Department of Hydrology and Meteorology with UNDP, targets over 2.3 million people. It will lower water levels in four critically dangerous glacial lakes (Thulagi, Lower Barun, Lumding Tsho, and Hongu 2), expand hazard monitoring networks, and upgrade early warning systems in the Koshi and Gandaki river basins.

High-altitude mountain communities, downstream populations, hydropower companies, private tourism operators, and local governments are directly affected. The Himalayan region is heating nearly twice as fast as the global average, and Nepal faces more than 2,000 glacial lakes, 21 deemed potentially dangerous. Without intervention, GLOFs could devastate downstream communities, disrupt energy supply chains, and damage transport and agricultural infrastructure. Hydropower firms and tourism operators will co-finance and participate, particularly through hydro-meteorological stations and early warning technologies.

The programme combines vegetative gabion walls, check dams, and nature-based solutions, reforesting more than 150 hectares of riverbanks to stabilise soil. It leverages USD 14 million in co-financing from Nepal's government and partners, bringing total investment to roughly USD 50 million, and aligns with Nepal's National Adaptation Plan (2021-2050) and third Nationally Determined Contribution. Local governments, disaster response units, and frontline institutions will receive capacity-building training, while DHM leads technical oversight and post-project sustainability planning that stakeholders should monitor.

Key figure — GCF grant: USD 36.1 million over seven years

This content is AI-assisted and reviewed by the ESG Broadcast editorial team. It is for informational purposes only and is not investment or ESG-rating advice. See our Technology & Transparency policy.

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Green Climate Fund approves USD 36.1 million for Nepal glacial flood resilience | ESG Broadcast