KATHMANDU, May 21: Finland has pledged to support Nepal's local climate adaptation program through a substantial grant. The grant agreement was officially signed at a ceremony held at the Ministry of Finance on Tuesday.

Representing Nepal, the agreement was signed by Sri Krishna Nepal, joint secretary of the Ministry of Finance and Head of the International Economic Assistance Coordination Division, alongside Rina-Rikka Hekka, the Finnish Ambassador to Nepal.

The Cabinet of Nepal resolved on May 16 to accept the grant, which totals 13 million euros (approximately Rs 1.878 billion). This funding is part of a broader financial collaboration that includes 51 million euros from the European Union and an additional 20 million euros from the Government of Nepal. The funds are designated for climate adaptation initiatives across Karnali and Sudurpaschim provinces.

This agreement marks a significant milestone as it coincides with the 50th anniversary of the establishment of diplomatic relations between Nepal and Finland, as well as with the European Union. The project is scheduled for implementation in the fiscal year 2024/25.

During the signing event, Joint Secretary Nepal highlighted the project’s goals to mitigate climate change impacts through localized adaptation strategies and natural resource management. He expressed confidence that the initiative would enhance sustainable natural resource management and improve the livelihoods of local communities.

Ambassador Hekka reaffirmed the commitment of Finland and the European Union to supporting climate action, a promise underscored at the recent United Nations Climate Change Conference (COP-28).