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, –Vulnerability Assessment –Capacity Enhancement –Resource Allocation –Mainstreaming in Planning Process –Social Mobilization National Periodic Plan (2013/ /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 –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: Even more rapid rise in Climate Change Budget:

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!!