Nepal Calls for Investment in Insurance and Innovation to Reduce Climate Disaster Risks

Kathmandu — Nepal has called for increased investment in insurance, innovation and resilient infrastructure to reduce the economic and physical losses caused by growing climate-related disasters.

Addressing the United Nations General Assembly, Nepal said the risks of floods, landslides, avalanches and other natural disasters were increasing due to climate change. It stressed that, alongside post-disaster relief and reconstruction, greater attention must be given to reducing future risks.

Nepal said climate-related disasters should be viewed not only as humanitarian crises but also as development and economic crises. Disasters destroy roads, bridges, schools, homes, agriculture and livelihoods, as well as clean energy infrastructure, setting back years of development efforts.

Nepal said adequate resources were essential for post-disaster recovery and reconstruction, and called for relief, recovery and reconstruction to be accompanied equally by accountability, compensation and resilience. It also stressed the need for grant-based assistance to vulnerable countries affected by climate disasters rather than placing them under additional debt burdens.

Nepal particularly highlighted the need to finance resilience and invest in insurance and innovation in the coming years. It also called for the development of resilient infrastructure and institutions, reduced dependence on fossil fuels, and stronger disaster early-warning and life-saving systems.

Highlighting the growing climate risks in the Himalayan region, Nepal also proposed establishing a Himalayan Climate Resilience Mechanism led by Nepal, India and China. The proposed mechanism would facilitate the exchange of satellite data and expertise, monitoring of high-risk glacial lakes, strengthening of joint early-warning systems, and coordination of cross-border assistance during disasters.

According to Nepal, the impacts of climate change extend beyond national borders, making international cooperation essential for managing climate-related risks. Nepal also emphasized the important role of insurance as a tool for disaster risk transfer and financial protection, particularly in reducing losses, protecting infrastructure and supporting post-disaster reconstruction.

Nepal said global climate finance remains inadequate and called for financial mechanisms, including the Loss and Damage Fund, to be made more effective and accessible.

As climate-related disasters become an increasing economic risk for Nepal, the country has highlighted the insurance sector’s potential role in transferring disaster risks, protecting infrastructure and supporting reconstruction.