The government has introduced a new policy to streamline the use of international climate funds and ensure resources reach vulnerable communities more effectively. The Ministry of Finance has approved the Climate Finance Mobilisation Procedure 2082, aiming to improve transparency, accountability and coordination in climate-related spending.
Under the new framework, all climate funding received from international sources will be managed through a formal government system. The ministry will prepare a project priority pipeline and allocate funds based on national needs. The policy focuses on three major areas: addressing climate-related loss and damage, supporting adaptation in highly vulnerable regions, and reducing greenhouse gas emissions.
The procedure strengthens the role of provincial and local governments in implementing climate programmes. Funds will be transferred as conditional grants to the level of government best suited to carry out projects. If a project involves only one local government, funds will be sent directly to that local body. Projects covering multiple local areas will be implemented through provincial governments. The policy aims to ensure climate financing reaches communities facing the greatest risks.
The framework also allows private sector participation in climate projects, provided it does not create future financial liabilities for the government. Non-governmental organisations will be required to mobilise climate funds through the Social Welfare Council and regularly update progress reports.
To improve monitoring, the Finance Ministry will operate a digital platform that tracks project details, budgets, donor support and implementation progress. The government has also formed a 17-member Climate Finance Steering Committee to oversee policy implementation, supported by a technical committee for project evaluation.
Officials say the new system will strengthen Nepal’s ability to attract international climate funding and ensure it is used more efficiently and transparently.