Nepal’s Ministry of Finance has introduced the Climate Finance Mobilization Procedure 2082, approved on February 5, 2026, to make climate finance flowing into Nepal simpler, more systematic and effective. The procedure identifies three priority areas: addressing climate-induced loss and damage, climate adaptation in highly vulnerable sectors and geographical areas, and greenhouse gas emission reduction. Projects will be selected based on factors including grant share, use of national systems, project size, sustainability, job creation, beneficiaries, green technology, and geographical balance.

The framework requires climate projects to align with Nepal’s Constitution and laws, international commitments, National Climate Policy, net-zero strategy, National Adaptation Plan, Nationally Determined Contributions and Sustainable Development Goals. The Finance Ministry will maintain a project pipeline, while a Technical Committee will evaluate concept notes and detailed proposals. For government projects, climate finance will generally flow through the national system and Federal Consolidated Fund, with financing for provincial and local projects provided as conditional grants where applicable.

The procedure also opens climate financing to eligible private-sector projects while requiring transparency, safeguards, audits and grievance mechanisms, and says the government should not incur future financial liabilities or sovereign guarantees from such projects. It also allows the Finance Ministry to establish a Climate Finance Facility, funded through climate funds, development partners and government resources, while designating the ministry as Nepal’s focal point for climate finance mobilization. A digital platform will track ongoing projects, project pipelines, financing and progress, alongside quarterly reporting, monitoring, evaluation and public disclosure requirements.