Nepal is the world’s fourth most climate vulnerable country due to harsh geography, largely poor and resource-dependent population, and weak institutional capacity to manage challenges. It is working to improve climate resilience across sectors and increase energy access through renewables to build a greener economy for all.
Source: World Bank
Building on national development priorities, Nepal’s strategic program for climate resilience is delivering $91 million in PPCR grants and concessional financing to support mainstreaming climate change into development plans and practices, as well as key investments in target areas. These include enhancing the resilience of watersheds in mountainous regions and reducing the vulnerability of communities and ecosystems to climate-related hazards, particularly through private sector engagement. Nepal is also participating in the SREP, with an investment plan for $40 million
to support a variety of renewable energy initiatives. They include a large-scale biogas program, public private partnerships for on-grid solar power development, and mini-grid solar or solar/wind hybrid systems to bring electricity to isolated communities. Nepal''s FIP Investment Plan, for an indicative allocation of $24 million, has an overall goal of strengthening the resilience of forest ecosystems. It will focus in the area of forest sector governance and capacity development for key stakeholder groups and institutions including IPs, local communities and other forest dependent poor.
Agriculture contributes to 35% of national GDP and employs 80% of the population
|NAME||FUND||FUNDING (USD MILLION)||COFINANCING (USD MILLION)||MDB|
|Biogas Extended Program||FUNDScaling Up Renewable Energy Program in Low Income Countries||COFINANCING (USD MILLION) 7.90||FUNDING (USD MILLION) 27.60||MDBIBRD|
|Building Climate Resilience of Watersheds in Mountain Eco-Regions||FUNDPilot Program for Climate Resilience||COFINANCING (USD MILLION) 23.54||FUNDING (USD MILLION) 4.63||MDBADB|
|Building Climate Resilient Communities through Private Sector Participation / Expansion of IFC-PPCR Strengthening Vulnerable Infrastructure Project||FUNDPilot Program for Climate Resilience||COFINANCING (USD MILLION) 23.10||FUNDING (USD MILLION) 59.86||MDBIFC|
|Building Climate Resilient Communities through Private Sector Participation / Strengthening Vulnerable Infrastructure Project||FUNDPilot Program for Climate Resilience||COFINANCING (USD MILLION)||FUNDING (USD MILLION)||MDBIFC|
|Building Resilience to Climate-Related Hazards||FUNDPilot Program for Climate Resilience||COFINANCING (USD MILLION) 31.00||FUNDING (USD MILLION) 0.30||MDBIBRD|
|Mainstreaming Climate Change Risk Management in Development||FUNDPilot Program for Climate Resilience||COFINANCING (USD MILLION) 5.15||FUNDING (USD MILLION) 1.28||MDBADB|
|Nepal Private Sector – Led Mini-Grid Energy Access Project||FUNDScaling Up Renewable Energy Program in Low Income Countries||COFINANCING (USD MILLION) 7.61||FUNDING (USD MILLION) 7.95||MDBIBRD|
|South Asia Sub-regional Economic Cooperation Power System Expansion Project: Rural Electrification Through Renewable Energy||FUNDScaling Up Renewable Energy Program in Low Income Countries||COFINANCING (USD MILLION) 31.20||FUNDING (USD MILLION) 41.22||MDBADB|
The CIF programmatic approach to investment planning and implementation brings strategic value to CIF recipient countries. Working through a transparent, country-led process, the CIF fosters trust and collaboration among government ministries, civil society, indigenous peoples, private sector, and the MDBs that implement CIF funding. Together, they translate Nationally Determined Contributions and other national development and climate strategies into an actionable CIF investment plan. Rather than one-off projects, the plan comprises long-term, sequenced investments that mutually reinforce each other and link to other critical activities, such as policy and regulatory reform and capacity building. Under national government leadership, CIF stakeholders continue to work together to implement the plan, continually assessing progress and sharing lessons learned along the way.