Nepal at COP27: Translating policy into practice

We supported the Government in the run-up to COP 26 where the Government of Nepal set out its enhanced NDC and its impressive net zero commitment. Since then, the focus has been on helping the government prioritise delivery of these ambitious plans and identify financing to achieve its goals. At COP 27, the Government of Nepal will launch its NDC Implementation Plan as well as a Climate Finance Strategy and Action Plan.

From ambition to reality

Nepal’s net zero commitment at COP 26 was one of the most ambitious in the world. It set out plans for Nepal to be net zero over 2022-2045 (so net emissions early in the period would be balanced by net absorption of carbon in the latter part of this period) and carbon negative after that. This will be achieved through a combination of a low carbon pathway and halting and reversing deforestation. The NDC also commits to protecting the people of Nepal from climate risks by 2030.

These impressive commitments are not easy to deliver. We have supported the Government to develop its NDC Implementation Plan that prioritises the actions and sets out concrete steps needed to put these into practice. The Implementation Plan sets out the actions needed along with success measures to judge progress, financing mechanisms to deliver the resources required and clarify on the roles and responsibilities of different agencies for delivery.

Helping Nepal secure finance to address climate challenges

Nepal has an unprecedented opportunity to leverage traditional and non-traditional and low carbon financing. We supported the Government of Nepal to devise Nepal’s Climate Finance Strategic Roadmap which aims to guide the Government in increased access to climate finance, build capacity at all levels of society to adapt to the impacts of climate change, and enhance coordination between the Government and other stakeholders, such as development partners and the private sector. With ambitions raised by Nepal during COP26 with its climate commitments, the financing priorities should be more aligned to meet the targets.

Nepal needs to increase financing of climate action tenfold to US$ 46 billion to deliver its NDC ambitions to limit emissions, increase forest cover and protect its people from the impacts of climate change. In a report on Capitalising Green Finance, we have analysed the trends and scenarios, options for additional financing and barriers and enables to financing Nepal’s climate ambitions.

Other work with the Government of Nepal

We are supporting the Government of Nepal in the fulfilment of commitments raised at COP26. Nepal is part of the Green, Resilient and Inclusive Development (GRID) initiative, which is aligned to deliver Nepal’s climate ambition articulated in Nationally Determined Contributions (NDCs), Long Term Strategy (LTS), and National Adaptation Plan (NAPs), which has the ultimate aim to promote the green growth opportunities in the context of the post-Covid-19 development priorities. Under the GRID, development partners have provided an estimate of up to $7.4 billion of current and near-term future funding. We are supporting in providing detailed analysis and recommendations on the GRID/Climate finance strategy for consideration by the Ministry of Finance (MoF) together with the National Planning Commission (NPC) and Ministry of Forests and Environment (MoFE).