Nepal Strengthens Climate Finance Architecture with ICT

Nepal Climate Finance Architecture

19th November 2025, Kathmandu

Today marks a pivotal moment in Nepal’s journey toward climate-resilient development.

Nepal Climate Finance Architecture

The Ministry of Finance, with technical support from the United Nations Development Programme (UNDP), successfully concluded the final workshop for the revision of the National Climate Change Financing Framework (CCFF).

This critical step sets a new standard for mobilizing, managing, and tracking climate funds across the nation. ICT solutions and digital finance are expected to be key enablers in its implementation.

Why the Revised CCFF Matters

The newly revised framework reflects Nepal’s strong, proactive commitment to integrating climate action into its core planning, budgeting, and investment systems.

The primary goal is to ensure that climate finance—from public, private, and international sources—is mobilized effectively, managed with transparency and accountability, and equitably distributed.

The CCFF’s focus is on reaching the communities most vulnerable to the adverse effects of climate change. Suman Dahal, Joint Secretary at the Ministry of Finance, emphasized the framework’s importance.

He stated, “The Climate Change Financing Framework is a vital instrument for Nepal to systematically integrate climate priorities into national and subnational planning and budgeting processes. It ensures that climate finance is effectively mobilized, transparently managed, and directed toward building a resilient and sustainable future for all Nepalis.”

Bridging Policy and Action: UNDP’s Support

UNDP has played a crucial role in providing the technical support necessary for this revision. Julien Chevillard, Deputy Resident Representative, UNDP Nepal, highlighted the achievement: “The revised CCFF marks a key milestone in Nepal’s climate finance journey.

It strengthens the foundation for coordinated, transparent, and inclusive financing—bridging policy with action and ensuring that climate investments reach the communities who need them most.”

The framework’s revision addresses existing gaps by creating a more robust system for tracking climate-related expenditure. This is essential for both domestic monitoring and meeting international reporting standards.

The Role of Technology and ICT Solutions

A major focus of the implementation phase will be leveraging ICT solutions to enhance the CCFF’s impact. Information and Communication Technology (ICT) is a game-changer for financial transparency and efficiency, especially in the context of climate action.

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Enhanced Transparency: Digital platforms and financial management information systems (FMIS) can be used to track every rupee allocated and spent on climate projects, making the entire process more transparent and reducing opportunities for corruption.

Data-Driven Decisions: ICT solutions facilitate the collection and analysis of granular data on climate vulnerability, project performance, and expenditure. This data is crucial for evidence-based decision-making, ensuring that funds are allocated to high-impact, priority areas for climate-resilient development.

Local-Level Access: Mobile banking, digital payments, and other fintech innovations can help channel climate finance directly to local governments and vulnerable communities, bypassing traditional bureaucratic bottlenecks and increasing the pace of adaptation efforts.

Accountability and Monitoring: Technologies like geo-tagging and remote sensing (via drones or satellites) can provide real-time monitoring of project implementation, strengthening accountability and transparency in climate investments.

Framework to Implementation: The Next Steps

With the CCFF framework now revised, Nepal must shift its focus vigorously to implementation. This transition requires concerted efforts to:

1. Enhance Institutional Coordination: Stronger collaboration is needed among federal, provincial, and local governments, as well as with development partners and the private sector, to ensure unified implementation of the framework’s guidelines.

2. Strengthen Accountability: Building on the foundation of the existing Climate Budget Coding system, the new framework mandates rigorous standards for financial reporting and performance auditing to uphold accountability and transparency.

3. Scale Up Financing: Efforts will intensify to mobilize both domestic resources and international commitments. Attracting private sector investment through innovative financial instruments will be critical to meet the nation’s significant financial needs for climate-resilient development.

As global attention turns to COP30, Nepal’s proactive move to strengthen its National Climate Change Financing Framework positions it as a leader in turning international pledges into concrete, verifiable national action.

The effective use of ICT solutions will be the engine driving this transformative change, ensuring that climate funds are utilized efficiently to secure a resilient and sustainable future for Nepal.

For more: Nepal Climate Finance Architecture