Nepal finalizes draft Climate Mitigation and Adaptation Plan, Estimates $115 billion needed over 10 years

KATHMANDU – The government has completed the draft of Nepal’s National Implementation Plan for Climate Change Mitigation and Adaptation, projecting a financing requirement of $115 billion over the next decade to meet targets set under its Third Nationally Determined Contribution (NDC).

The draft has been prepared by the Ministry of Forests and Environment following consultations with all provinces, using the quantitative and qualitative targets outlined in the Third NDC as the core framework. The implementation plan is designed to ensure effective execution of climate actions, including emissions reduction, adaptation measures, institutional coordination, monitoring, and financial management.

The Third NDC, formulated in line with Nepal’s obligations as a party to the Paris Agreement, includes sectoral and sub-sectoral targets to reduce greenhouse gas emissions and strengthen climate resilience. The NDC was approved by the Council of Ministers on May 13 and submitted to the UN climate secretariat on May 18.

The Paris Agreement aims to limit the global temperature rise to 1.5 degrees Celsius, alongside reducing climate-related risks. Nepal’s national climate policy identifies key priority sectors for adaptation: agriculture and food security; forests, biodiversity and watershed conservation; water resources and energy; rural and urban settlements; industry; transport and physical infrastructure; tourism; natural and cultural heritage; health; drinking water and sanitation; and disaster risk reduction and management.

Funding Breakdown

Of the total estimated $115 billion, around $74 billion is earmarked for quantitative greenhouse gas emission reduction measures. A further $41 billion is projected for policy reforms, adaptation priorities, loss and damage response, just transition efforts, and human rights-related climate actions.

More than 85 percent of the planned activities are expected to be implemented only if international financial support is secured. The draft plan covers the period 2026 to 2035 and has been opened for public feedback, with suggestions invited until February 22.

Climate Finance Mechanisms

The draft highlights multiple international funding windows that Nepal can access. These include the Green Climate Fund (GCF), where institutions such as the Alternative Energy Promotion Centre (AEPC), the National Trust for Nature Conservation (NTNC), and Nepal Investment Mega Bank are accredited entities able to mobilize funds within Nepal.

AEPC and NTNC are positioned to implement renewable energy and conservation-related projects, while Nepal Investment Mega Bank can channel GCF resources to the private sector for green investments.

The plan also references the Special Climate Change Fund, which can support adaptation, technology transfer, and capacity building in sectors such as energy, transport, industry, agriculture, forestry, and waste management, as well as economic diversification.

Nepal may also access the Least Developed Countries Fund (LDCF), established in 2001 specifically for LDCs, to finance climate-resilient planning and programs mentioned in the NDC.

Additionally, the Loss and Damage Fund, operationalized after its establishment in 2022, offers financial support to developing countries affected by climate impacts. Nepal aims to tap this mechanism to address climate-induced losses and damages.

Role of the Private Sector

The draft stresses active participation from the private sector, especially in expanding clean energy use and operating hydropower projects in an environmentally and climate-friendly manner. The government has committed to providing coordination, facilitation, and support to encourage green investment.

To strengthen governance, the plan proposes a multi-layered coordination structure, including six committees: Provincial Climate Change Coordination Committees, Provincial Environment and Climate Councils, an Inter-Ministerial Climate Change Coordination Committee, a High-Level Climate Change Steering Committee, the National Council for Environment Protection and Climate Change Management, and a Parliamentary Committee.

The government says the implementation plan will serve as a comprehensive roadmap to translate Nepal’s international climate commitments into actionable programs, while aligning development with low-carbon and climate-resilient pathways.