On Tuesday, 20th January 2025, the 47th President of the United States, Donald Trump, signed an executive order to withdraw from the Paris Climate Agreement, a move that sparked widespread concern among climate change experts, policymakers, and global communities. Nepal, despite contributing less than 0.1% of global greenhouse gas emissions, is among the nations most affected by climate change. The paradox of Nepal’s situation lies in the fact that while its emissions are minimal, it faces disproportionately severe impacts from climate change. Nepal's call for climate financing is not one of charity, but a recognition of the historical responsibility of industrialized nations that have contributed significantly to global emissions.
In this context, Nepal has actively sought financial compensation through international climate finance mechanisms, emphasizing that financial support is essential for building resilience and addressing the mounting impacts of climate change. Initiatives such as the Loss and Damage Fund, currently being negotiated in international forums, offer hope that Nepal may receive the necessary resources to mitigate both short-term and long-term climate-related challenges. However, the country continues to face significant barriers in accessing these funds, due to bureaucratic delays, inadequate technical capacity, and the intricate nature of international negotiations.
Nepal’s vulnerability to climate change is amplified by its diverse topography, including the fragile Himalayan mountain range, and its dependence on agriculture, which is highly susceptible to changing weather patterns. Rising temperatures and unpredictable rainfall are increasing the frequency of natural disasters like floods, landslides, and glacial lake outburst floods (GLOFs). For example, the accelerated melting of glaciers in the Himalayas has led to the formation of dangerous glacial lakes that threaten to flood downstream communities. Additionally, the monsoon season, which is crucial for agricultural productivity, has become erratic, causing both severe droughts and devastating floods that undermine food security. Furthermore, shifting crop growing seasons and fluctuating water availability exacerbate poverty and migration, particularly in rural and mountainous areas, further destabilizing Nepal’s socio-economic fabric.
The Key Challenges and Issues
Despite the urgent need for climate finance, Nepal faces significant challenges in accessing and efficiently utilizing these resources. The country's climate finance efforts are hindered by a combination of institutional, financial, and bureaucratic hurdles. While Nepal has received funding through international mechanisms such as the Green Climate Fund (GCF) and the Global Environment Facility (GEF), the pace of disbursement and the effective use of these funds have been slow and inefficient.
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A primary issue is the lack of technical capacity within local institutions including government stakeholders to manage and implement climate projects. Despite Nepal securing over $60 million in GCF funding for climate resilience projects, much of it has been delayed due to cumbersome approval processes and poor coordination between government agencies. Furthermore, there is often a mismatch between the priorities of international donors and the local needs of Nepal. As a result, projects sometimes fail to align with the country’s socio-economic realities, reducing their effectiveness. Additionally, inadequate monitoring and evaluation systems contribute to inefficiencies in assessing the impact of climate finance, preventing the optimization of resources for the most vulnerable communities.
These obstacles, coupled with challenges in project execution, limit Nepal’s ability to address climate change effectively. Vulnerable communities, especially those in rural and mountainous regions, remain disproportionately exposed to the adverse effects of climate change, making it increasingly difficult for the country to achieve sustainable development and climate resilience.
Pathways to Resilience
To overcome these challenges and unlock the potential of climate finance, Nepal must take immediate and strategic actions. Addressing the country’s vulnerabilities and maximizing the effectiveness of financial resources are essential to building long-term resilience. The following steps are key to achieving this:
1.Building the technical and managerial capacity of local institutions responsible for climate financing is critical. Local governments, climate finance bodies, and project implementation agencies need to develop stronger skills in financial management, project implementation, and monitoring and evaluation. This will ensure that climate funds are used efficiently and that the institutions involved are better equipped to handle complex climate projects.
2.Delays in securing approvals for climate finance projects are a major obstacle to timely action. Nepal must advocate for simplified approval procedures at international forums and work towards reducing bureaucratic hurdles. Establishing clear and transparent guidelines that align with both international standards and Nepal's specific needs will expedite the approval process and enable quicker action on climate adaptation and mitigation initiatives.
3.For climate finance to be truly effective, it must align with the priorities and needs of local communities, particularly marginalized groups. Engaging local stakeholders in the planning, design, and implementation of projects ensures that climate solutions address ground-level realities. This inclusive approach not only promotes the ownership of projects but also enhances their sustainability over the long term.
4.While international funding is crucial, Nepal must also focus on mobilizing domestic resources to complement external support. Policy incentives for private-sector investments in climate-resilient infrastructure and green technologies can stimulate economic growth while supporting climate adaptation. Additionally, establishing national climate funds to pool and manage resources can help ensure that Nepal has the financial means to tackle climate challenges in a more self-sustaining way.
5.Establishing robust systems for monitoring and evaluating climate finance projects is essential. These systems will help ensure transparency, track the progress of initiatives, and assess their impact. By strengthening monitoring frameworks, Nepal can improve the accountability of both donors and project implementers, ensuring that funds are used effectively and that climate projects deliver measurable results.
6.For climate finance to have a lasting impact, Nepal must integrate climate adaptation and mitigation strategies into its broader national development planning and budgeting processes. This will help align climate finance with national priorities, ensuring that climate goals are consistently pursued across all sectors. By embedding climate resilience into the country’s development plans, Nepal can ensure the sustainability of its climate action efforts and enhance its long-term ability to cope with climate change.
In conclusion, Nepal’s vulnerability to climate change, despite its minimal contribution to global emissions, underscores the urgent need for effective climate financing to address its growing challenges. The withdrawal of the United States from the Paris Climate Accord, as exemplified by President Trump’s executive order, has further complicated the global climate finance landscape. For Nepal, climate justice is not a request for charity but a call for industrialized nations to acknowledge their historical responsibility in contributing to global emissions.
To strengthen Nepal’s ability to access climate finance, immediate actions are needed. These include bolstering institutional capacity, streamlining approval processes, and improving local stakeholder engagement. Additionally, mobilizing domestic resources, implementing robust monitoring systems, and integrating climate goals into national planning are essential to increase Nepal’s resilience and capacity to address climate impacts. Through these efforts, Nepal can not only access the necessary funds but also build a sustainable framework for addressing its climate-induced vulnerabilities and fostering long-term development. Ultimately, addressing these challenges will be key to ensuring that Nepal remains resilient in the face of climate change, safeguarding the livelihoods of its people and securing a sustainable future for generations to come.
