INTEGRATING CLIMATE CHANGE FINANCE
WITHIN LOCAL PLANNING AND BUDGETING IN
NEPAL
Ramesh Kumar Adhikari
Under Secretary
Ministry of Federal Affairs and Local Development(MOFALD)
Government of Nepal
Policy Context
• Climate Change Policy, 2011.
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Vulnerability Assessment
Capacity Enhancement
Resource Allocation
Mainstreaming in Planning Process
Social Mobilization
• National Periodic Plan (2013/14-2015/16)
– Information Dissemination
– Integration in Development Programs
– Capacity for Climate Change Resilient
• Climate Change Budget Code, 2012
– Budget tracking
NAPA/LAPA
• National Adaptation Program of Action (NAPA)
– Country Vulnerability Assessment
– Coping Strategy Development
– Community Engagement
( The total cost for implementing National Adaptation program of Action
(NAPA) is estimated at US$ 350 million)
• Local Adaption Plan for Action (LAPA)
– Integrating climate change into local participatory
planning process.
– Implementing adaptation actions
(80% of estimated NAPA cost is committed to be spent at the local village/municipal level)
MOFALD’s Innovation / Initiation
• Environment Friendly Local Governance (EFLG)
Framework
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Environment
Climate Change Resilience
Disaster Risk Reduction
Solid Waste Management/Sanitation
• CPEIR initiation
– Fact and insight of Climate Change Finance
– Basis for Climate Budget Code
Climate Change Expenditure
Rapid Rise in
Total National
Budget:
Climate Budget as a Proportion of
Total Budget
(Current Prices)
400,000,000
350,000,000
300,000,000
250,000,000
200,000,000
150,000,000
Even more
rapid rise in
Climate
Change
Budget:
Climate
Change
Budget
100,000,000
50,000,000
0
Other
Climate Public Expenditure
• About 2 % of GDP and 8% of
Government Expenditure is on climate
activities . The trend is increasing.
• Around 80% of climate change
expenditure relates to adaptation
activities.
• Around 60% of the expenditure is
executed directly by Central Agencies
and 40% through Local Agencies
(Unconditional Capital grants ).
Strengths /Opportunities
– Mainstreaming climate change into national and local development
planning and budgeting process
– Local initiatives and some discretion on revenue and expenditure
– Compliance of National guidelines and directives in local development
planning and budgeting by local bodies
– Strong social mobilization
– Capacity development of stakeholders
Challenges
• Offering to Covering (people, place and purpose)
• Sensitize to Satisfy (time, resource, efforts)
• Exclusive to Inclusive (country partner, development partner)
Way Forward
• Undertake Climate Change Public Expenditure Institutional
Review (CPEIR) regularly to track climate change
expenditure
• Follow orientation -consultation –consensus approach on
climate change issues among stakeholders to strengthen
climate change resilience
• Integrate climate change component in Minimum
Conditions Performance Measure (MCPM) system and
provide incentive accordingly
Thank You All!!
rameshkumar.adhikari@mofald.gov.np
rkumar.adhikari@gmail.com