The United Nations’ climate fund has approved a grant of $36.1 million (approximately Rs 5 billion) to support Nepal’s efforts in mitigating the growing threat of glacial lake outburst floods (GLOFs) and climate change-induced flooding in the country’s Himalayan river basins.

According to the state-run news agency RSS, the funding was endorsed during the 42nd meeting of the Green Climate Fund (GCF) Board held in Papua New Guinea on Tuesday.

The approved project, titled “Protecting Livelihoods and Assets at Risk from Glacial Lake Outburst Floods (GLOFs) and Climate Change-Induced Flooding in Glacial River Basins of Nepal” , is designed to help Nepal proactively address the increasing risks posed by climate change, added RSS.

The Green Climate Fund, established in 2010 under the United Nations Framework Convention on Climate Change (UNFCCC), is the world’s largest climate fund, providing financial assistance to developing countries for climate change adaptation and mitigation efforts.

Dr. Sindhu Prasad Dhungana, Nepal’s alternate board member representing the Least Developed Countries (LDCs) at the GCF, confirmed to RSS that Nepal’s proposal was unanimously approved by the board. Dhungana, who attended the meeting in Papua New Guinea, noted that Nepal's project was one of 17 approved out of 19 proposals submitted. The initiative will be led by Nepal’s Department of Hydrology and Meteorology (DHM) in partnership with the United Nations Development Programme (UNDP), reads a news report published by RSS.

According to UNDP Nepal, the seven-year project is expected to directly benefit more than 2.2 million people living in the Koshi and Gandaki river basins. The initiative aims to shift Nepal’s approach from reactive disaster response to proactive risk reduction and prevention. The project is also expected to catalyse further public and private investment in climate resilience, serving as a model for other high-altitude nations facing similar threats.

The project’s key activities will include expanding and upgrading hazard monitoring and early warning systems; lowering water levels in four high-risk glacial lakes—Thulagi, Lower Barun, Lumding Tsho, and Hongu 2; and strengthening riverbanks and flood-prone areas through reforestation and the construction of protective infrastructure such as check dams and vegetative gabion walls, RSS reported. Additionally, it will enhance the capacity of national and local authorities, first responders, and communities to prepare for future climate-related risks.

The total investment includes $14 million in co-financing from the Government of Nepal, UNDP, and the Independent Power Producers' Association Nepal (IPPAN), in addition to the GCF grant.

UNDP Resident Representative to Nepal, Kyoko Yokosuka, welcomed the initiative, describing it as a long-term investment to protect lives and strengthen resilience in vulnerable mountain regions. “Supported by the Green Climate Fund, this initiative represents a long-term investment to protect lives and strengthen resilience where it matters most. It is climate action that is both grounded and game-changing,” RSS quoted her as saying.

Kamal Ram Joshi, Director General of the Department of Hydrology and Meteorology, expressed optimism that the project will help protect vulnerable Himalayan communities by enhancing local capacity and safeguarding lives, livelihoods, and infrastructure. Noting that 21 glacial lakes in Nepal have been identified as high-risk, he called the GCF grant a significant achievement that supports the country’s broader risk management efforts.

According to RSS, stakeholders have described the GCF’s approval as a major milestone in Nepal’s journey toward building climate resilience in the face of escalating environmental challenges.