PROJECT: Strengthening climate finance activities in Nepal
Project Reference: TAAS-0072
Nepal bears an annual loss of 1.5 % to 2 % of its GDP due to climate variability and extremes events. This is expected to increase to 2 to 3% of the current GDP by 2050, requiring additional US$2.4 billion of investment by 2030 to build Nepal’s resilience to climate impacts. Accessing and utilising climate finance is needed to enhance Nepal’s resilience capacity to better adapt to climate-induced hazards that the country is prone to. International and domestic finance is also needed to invest in Nepal’s NDC based on their Low Carbon Economic Development Strategy (LCEDS) which notably envisions meeting its energy demand by 80% renewable energy by 2050 through hydropower and solar plants.
In light of this need to support Government of Nepal on their efforts to access climate finance for climate action, CDKN is supporting the government to enhance their understanding and capabilities towards accessing and utilizing Climate Finance. The project will help raise general awareness among government and NGOs on climate finance and enhance understanding and capacities of potential implementing entities (NIEs).
CDKN’s support in this instance aims at
- Supporting and training potential NIEs to enhance understanding with regards to accessing international climate finance through direct access modality;
- Bridging divergent views /understanding among senior government officials from the ministry of finance, the ministry of Environment and others.
- Additionally, training will focus on awareness raising regarding barriers towards accessing Climate Finance both within Nepal (delivery mechanism) and international (access). It is expected that the training will provide the broader understanding of climate finance landscape at global level.
- Developing knowledge products, sharing international best practices to enhance understanding of climate finance and its possible utilization in the country
Based on a situation analysis, a baseline report on work on climate finance to date in Nepal, including current barriers and challenges, and capacity needs will be developed.
Using the baseline, two workshops will be designed to:
1. Sensitive government and NGOs on key aspects of climate finance using knowledge products such as briefing notes and infographics
2. Strengthen capacities of key stakeholders from the government, non-governmental organizations and the private sector on accreditation procedures and accessing climate finance by developing bankable project proposals for different climate funds including Green Climate Fund (GCF)
CDKN Funding: £40,828